Brian Levitt, global market strategist at Invesco, discusses economic growth and inflation on Barron’s Roundtable.
U.S. job growth slowed significantly in April, while the unemployment rate unexpectedly rose, a sign that high interest rates and stubborn inflation are starting to weigh on the labor market.
Employer added 175,000 jobs in AprilThe Labor Department said it was missing in its monthly payroll report released Friday. LSEG economists had expected an increase of 243,000 people. It was the worst month for job creation since October. Meanwhile, the unemployment rate gradually rose to 3.9%.
Wage growth was also subdued further last month, with average hourly wages, a key indicator of inflation, increasing by 0.2%, less than expected. On an annual basis, wages rose 3.9% in April.
The surprisingly weak report highlights how the job market is starting to become turbulent as a result of the Federal Reserve’s aggressive interest rate hike campaign, raising the possibility of a rate cut sooner rather than later. Wall Street welcomed the news, with all three major stock indexes surging in early Friday morning trading.
Small businesses are racking up credit card debt, raising some concerns
Chris Larkin, Managing Director of Trading and Investments at E*Trade, said: “After a period of volatile inflation data in recent months, today’s much weaker-than-expected jobs report puts a smile on the face of the Federal Reserve Board. I needed to bring it.” . “While June’s rate cut may not be on the table again, unless something unusual turns out to be the case, it increases the chances that the Fed will be able to cut rates at least once this year. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| Me: DJI | Dow Jones Average | 38225.66 | +322.37 | +0.85% |
| I: Comp | Nasdaq Composite Index | 15840.958321 | +235.48 | +1.51% |
| SP500 | S&P500 | 5064.2 | +45.81 | +0.91% |
This is a developing story. Please check back for the latest information.
