How Fed rate cut hopes clashed with slowing jobs growth
The post How Fed rate cut hopes clashed with slowing jobs growth appeared on BitcoinEthereumNews.com. The stock market kicked off the historically tough month of September on a rocky note as Wall Street speculated about the magnitude of the Federal Reserve’s next interest rate decision. Initially, the S & P 500 and Nasdaq hit all-time intraday highs Friday morning as investors digested a slower-than-expected August jobs growth . The weak data bolstered the case for the central bank to cut rates 25 basis points later this month, and as many as two more similar moves before year-end. The 10-year Treasury yield dropped below 4.1% to its lowest level since April. The “bad news is good news trade” was on. Shortly after the open, however, the market reversed lower as those rate cut hopes were overshadowed by concerns about the pace of the slowing labor market. Nonfarm payrolls increased by just 22,000 last month, versus the 75,000 expected, while July was revised up to a still tepid 79,000, and June was revised to show a loss of 13,000. While the S & P 500 and Nasdaq each closed Friday’s session slightly lower, both still managed to post gains of nearly 0.3% and more than 1%, respectively, for the week. .SPX .IXIC 5D mountain S & P 500 and Nasdaq 1 week Jim Cramer was not bothered by the market swings, saying Club name Home Depot is about to go even higher. “That’s what you buy right here, right now,” he said on Friday. Lower borrowing costs should be a catalyst for Home Depot shares because its business is heavily tied to a recovery in the housing sector. Home Depot stock has already been on the upswing since mid-June as rate cut expectations ramped up through the summer. Jim thinks the bond market might actually cooperate this time when the Fed starts cutting rates again — unlike…
The post How Fed rate cut hopes clashed with slowing jobs growth appeared on BitcoinEthereumNews.com.
The stock market kicked off the historically tough month of September on a rocky note as Wall Street speculated about the magnitude of the Federal Reserve’s next interest rate decision. Initially, the S & P 500 and Nasdaq hit all-time intraday highs Friday morning as investors digested a slower-than-expected August jobs growth . The weak data bolstered the case for the central bank to cut rates 25 basis points later this month, and as many as two more similar moves before year-end. The 10-year Treasury yield dropped below 4.1% to its lowest level since April. The “bad news is good news trade” was on. Shortly after the open, however, the market reversed lower as those rate cut hopes were overshadowed by concerns about the pace of the slowing labor market. Nonfarm payrolls increased by just 22,000 last month, versus the 75,000 expected, while July was revised up to a still tepid 79,000, and June was revised to show a loss of 13,000. While the S & P 500 and Nasdaq each closed Friday’s session slightly lower, both still managed to post gains of nearly 0.3% and more than 1%, respectively, for the week. .SPX .IXIC 5D mountain S & P 500 and Nasdaq 1 week Jim Cramer was not bothered by the market swings, saying Club name Home Depot is about to go even higher. “That’s what you buy right here, right now,” he said on Friday. Lower borrowing costs should be a catalyst for Home Depot shares because its business is heavily tied to a recovery in the housing sector. Home Depot stock has already been on the upswing since mid-June as rate cut expectations ramped up through the summer. Jim thinks the bond market might actually cooperate this time when the Fed starts cutting rates again — unlike…
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