Live Updates: U.S. Job Growth Expected to Rebound

Published On Sep 6, 2024, 5:47 AM

The latest jobs report indicates a slowing labor market, with only 142,000 jobs added in August, which is below expectations. Revisions for June and July's job numbers were down, highlighting a trend of negative adjustments. The unemployment rate dropped slightly to 4.2%, and wages increased by 0.4% month-on-month. While the labor market isn't collapsing, the cooling trend raises concerns about consumer demand and the Federal Reserve's potential interest rate cuts. The market reacted negatively, with tech stocks particularly affected. The Fed is expected to make its first rate cut at their upcoming meeting, but uncertainty remains about the size of the cut.

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Stock Forecasts

AI prediction results, not representative of any investment advice.

QQQ View QQQ chart on TradingView

Negative

Given the mixed job report, with weaker job growth being balanced by strong wage growth, we predict a slight increase in interest rates could happen. However, market reaction indicates a preference for lower rates to support growth. The tech sector, given its recent downturn and reliance on borrowing costs, may see further negative sentiment.

SPY View SPY chart on TradingView

Negative

The overall decline in the stock market, particularly in tech, suggests investors are wary of a prolonged economic slowdown. If the Fed lowers rates, this could lead to future recoveries; however, for the immediate future, a cautious outlook on the tech sector remains, suggesting negative returns.

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