On Tuesday, both the S&P 500 ETF (SPY) and the NASDAQ 100 ETF (QQQ) ended with gains, just ahead of important inflation data expected later this week.
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The market displayed resilience, maintaining its upward trend despite the Labor Department’s revision indicating a significant drop in new employment—911,000 jobs—over the year ending March 2025. This span includes ten months under President Biden and two months under President Trump.
Revisions over the last decade have fluctuated between -0.4% and 0.3%, but the latest figures reflect an adjustment of -0.6%. This marks the largest revision in labor market data since 2009, contributing to ongoing discussions about labor indicators.
In an interview with CNBC, JP Morgan CEO Jamie Dimon suggested, “I think the economy is weakening.” He expressed uncertainty about whether a recession is looming or if it’s just a gradual decline. He noted the possibility of the Federal Reserve lowering rates during the upcoming Federal Open Market Committee (FOMC) meeting on September 16-17, though he cautioned that such a move might not have significant implications for the economy.
JPMorgan’s analysis indicated that while investors typically view rate cuts positively for stocks, this time might be different due to concerns about valuations in light of troubling macroeconomic data.
Dimon emphasized concerns surrounding the Fed meeting on September 17, where a 25 basis point reduction could prompt a “sell the news” reaction among investors, especially given the economic conditions, Fed responsiveness, strained market positioning, and the less robust buyback activity from weaker companies.
Treasury Secretary Scott Bescent aligned with Trump’s assertion that “the Fed is limiting growth excessively.” He noted that reduced interest rates could encourage borrowing, thereby spurring economic activity through increased spending and investment.
Meanwhile, Apple (AAPL) saw a decline following the announcement of its new iPhone lineup. The tech giant introduced the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and its inaugural iPhone Air. Priced starting at $999, the Air is touted as Apple’s slimmest iPhone yet at 5.6mm, featuring a 6.5-inch Super Retina XDR display, an A19 Pro chip, and a titanium frame.
The S&P 500 (SPX) ended up by 0.27%, while the Nasdaq 100 (NDX) posted a 0.33% increase.
For those interested in staying alerted to macroeconomic events, checking the latest events on the Economic Calendar may be useful.
