All articles tagged with #jobs report
The US economy added only 29,000 jobs in September, far below the 84,000 to 90,000 expected by economists. The unemployment rate rose to 4.2%, and wage growth slowed to a five-year low. Markets rallied as traders bet the Federal Reserve will hold interest rates steady in October, while the weak data adds pressure to Republicans ahead of the November 3 midterms.
U.S. stock markets rallied on Friday as softer-than-expected September jobs data reduced fears of Federal Reserve rate hikes. The Nasdaq Composite reached an intraday record high, driven by gains in technology stocks, while the S&P 500 and Dow Jones Industrial Average also posted modest gains. Nvidia shares hit an all-time high, and Tesla reported strong third-quarter deliveries. However, hard drive manufacturers Seagate and Western Digital fell sharply after Toshiba announced plans to expand production capacity.
The U.S. economy added only 29,000 jobs in September, missing expectations and pushing unemployment to 4.2%. This weak data triggered a rally in tech stocks, with Nvidia hitting an intraday record, while the Dow Jones finished the week in the red. The Federal Reserve is now expected to hold rates steady in October.
U.S. Treasury yields rose on Wednesday as traders dismissed softer-than-expected August inflation data in favor of upcoming jobs figures. The 10-year yield hit 5.293%, near 2007 highs, while the 30-year reached 5.644%, its highest since 2002. Although core inflation came in below forecasts, easing fears of immediate Federal Reserve rate hikes, market focus shifted to Friday’s employment report, which is expected to show robust job growth.
August’s payrolls rose by 162,000, beating estimates of 55,000 and marking the strongest August upside since 1998, but most of the gain came from restaurants/bars (59,000) and local-government education (42,000), which together account for about 62% of the total—leaving roughly 61,000 for the rest of the economy. Bloomberg Economics attributes much of the surprise to an unusually mild seasonal adjustment linked to World Cup disruptions in leisure/hospitality. May and July revisions were higher, unemployment held at 4.1%, and participation rose, suggesting the summer slowdown wasn’t as severe as headlines suggested. Wage growth cooled a bit while hours rose, indicating the hiring burst was skewed toward lower-wage roles and that the inflation outlook—and Fed policy—remains the key question.
August added 162,000 jobs (with revisions boosting prior months), unemployment held at 4.1%, and wages rose 3.1% year over year, led by a jump in leisure and hospitality. The stronger-than-expected report could push the Fed to hike rates this month as markets price in tighter policy ahead of the midterms, with investors awaiting the Sept. 11 CPI release to confirm the trajectory.
The August jobs report due at 8:30 a.m. ET is expected to show modest payroll gains (about 65,000) with the unemployment rate near 4.2%, underscoring a “low-hire, low-fire” labor market in transition as Baby Boomers retire, immigration slows, and AI reshapes the economy. Hiring has been soft and wage growth tame, with healthcare likely driving gains and July’s drop possibly a seasonal quirk that may be revised in next month’s data.
Forecasts point to an 53,000 gain in August nonfarm payrolls, keeping the unemployment rate at 4.1% after June–July net losses, in a “stable but unexciting” labor market. Hiring remains tepid amid geopolitical uncertainty, AI growth, and a shrinking workforce, with the Fed focusing on inflation. Revisions are typically downward, and external factors like the Haitian TPS cancellation could affect August payrolls.
CNN’s Harry Enten highlighted new polling showing Trump’s job-approval on the economy in the red and, with a July jobs report showing a 23,000-job drop, signaled waning support among key voters—raising questions for Republicans as the midterms approach.
Two CNN analysts argue the July jobs report was weak and complicates the inflation fight and the Fed’s next move: soft labor data against persistent inflation, a debate over Warsh’s “reaction function,” and a bond market that may be pricing in mixed signals ahead of the September meeting; with mortgage rates climbing toward 7%, the real-world costs of policy ambiguity loom.
Friday’s July employment data surprised to the downside with payrolls falling 23,000 while the unemployment rate eased to 4.1% as participation remained near pandemic lows. The softer hiring pace and softer wage growth reinforce expectations the Fed will keep rates unchanged this year, helping Treasury yields slide and equities jump, led by large tech names such as Nvidia, Microsoft and Meta. Traders also trimmed odds of a September rate hike, signaling a more favorable backdrop for stocks despite ongoing inflation concerns.
White House economist Kevin Hassett argues July’s dismal payrolls can be dismissed by excluding sectors that lost jobs and focusing only on gains, but the broader Bureau of Labor Statistics data show a fragile, patchy labor market with declines in local government education and mixed manufacturing signals, challenging the idea of a strong economy despite some private-sector growth.
A weaker-than-expected July payrolls report shows a 23,000 decline in jobs (vs. +80,000 expected) with May–June revisions downward, while the unemployment rate ticked down to 4.1% as participation fell. Analysts say the data supports a pause in rate hikes but leaves the door open for a September move if inflation remains hotter than forecast, making Fed officials wary of a too-rosy labor market as inflation data next week looms.
July payrolls fell by 23,000 as education, government and retail cut jobs, while the unemployment rate eased to 4.1% and labor-force participation dipped to 61.4% — the lowest in five years, with about 264,000 people leaving the labor force. Retail lost 19,000 jobs (big-box retailers hardest hit), leisure and hospitality shed 40,000, and local education dropped 49,000, though healthcare added 22,000. June’s gains were revised down to +20,000. With wage growth lagging inflation and Fed rate expectations shifting little, the report underscoring a sluggish economy helped push modest stock gains in trading.
U.S. stock futures rose Sunday as investors prepared for the July jobs report and a busy week of earnings, with Dow futures up about 200 points (0.4%), S&P 500 futures +0.5%, and Nasdaq-100 futures +0.8%. Oil declined after Trump said he canceled a planned Iran strike. Friday’s session left major indices near record highs, and traders await earnings from McDonald’s, Kraft Heinz, Costco, Disney, Palantir, and AMD, along with the July payrolls data expected to show around 87,500 new jobs and a 4.3% unemployment rate.