US LABOR DATA AS THE LAST INPUT FOR THE DECEMBER FOMC MEETING!!! US employment data dominated the attention of market participants last week, where 3 important reports plus one jobless claim will greatly affect the US central bank’s monetary policy this week.
Data on Thursday showed that the number of Americans who filed for first-time unemployment aid came in at seasonally-adjusted 220,000 last week, marking a slight uptick from 219,000 for the week ended on Nov. 25.
The Dow closed just higher Thursday (8/12/23) as a tech-led rally underpinned by Alphabet and AMD offset losses in energy stocks ahead of the monthly jobs report due Friday.
The ADP National Employment report showed private sector job gains of 103,000 in November, below economists’ expectations of 130,000. This provided fresh evidence of a weakening labor market, a day after news of falling job openings in October.
US stocks closed in negative territory on Wednesday (06/12/23), triggered by a drop in megacaps and energy stocks as signs of a weakening labor market reinforced expectations that the Federal Reserve could start cutting interest rates early next year.
US Treasury yield fell after economic data showed labor demand fell to a 2-year low. US JOLTs Job Openings recorded job openings in the world’s largest economy at only 8.733 million in Oct., less than expected and also lower than the previous month at around 9.3 million.
US stocks closed mixed, with Nasdaq leading the gainers by 0.3% while DJIA lost 0.2% on falling US Treasury yields after economic data showed labor demand fell to a 2-year low.
The US Treasury yield raised ahead of the Nonfarm Payroll report later this week. The 10-year US Treasury yield rose 4 basis points to 4.266%, with some arguing that the recent decline in yields is due to the market pricing in a Fed rate cut too soon.
The Dow Jones index closed 0.1% lower on Monday (04/12/23), amid a 0.8% slump in the Nasdaq Composite triggered by rising US Treasury yields ahead of the Nonfarm Payroll report later this week.
