Despite this month’s strong US jobs report, financial experts have expressed their qualms about the US stock market. They think the robust employment report did little to ease the nerves on Wall Street.
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Based on the update posted online by business and finance news outlet Zawya.com, the better-than-anticipated US jobs report relieved some worries about a forthcoming recession.
It demonstrated that employers in the United States are recruiting far more employees than expected last month. Moreover, Friday’s report indicated that nonfarm payrolls surged by 372,000 jobs in June 2022.
Meanwhile, economists that global news outlet Reuters surveyed had predicted 268,000 jobs were added last month. The US unemployment rate stayed at 3.6 percent for a fourth consecutive month.
However, other recent figures have been more doomy or ominous. Last Thursday, July 7, released data showed the number of US citizens filing new claims for unemployment perks suddenly increased in the past week.
Another report released last week exhibited that US manufacturing activity decelerated more than anticipated last month.
At Wall Street, the 10-year US Treasury yield that moves inversely to prices hit a 2.75-percent low. Meanwhile, the S&P 500 rebounded 6 percent from its June lows.
The immediate reaction to the US jobs report was muted in stocks. The S&P 500 was down 0.1 percent recently while Treasury yields shot higher.
The 10-year US Treasury yield was close to 3.1 percent. Richard Flynn explained that jobs reports are lagging economic indicators.
This managing director of Charles Schwab in the United Kingdom added that these details are usually strong entering a downturn.
Flynn remarked that stocks at Wall Street can carry on feeling the weight of slower economic growth, monetary tightening, and shrinking liquidity despite the latest “good news.”
Phil Orlando is Federated Hermes’s chief equity market strategist. He affirmed that they are unaware if Fed hawkishness and inflation have peaked.
Orlando relayed that the combination of uncertainty about inflation, earnings trends, and Fed policy suggests that stocks at Wall Street should go lower.
We appreciate the fact that the latest US jobs report indicated a positive trend, with more vacant employment positions being open, giving workers opportunities to earn money.
We think investors should consider the insights of Wall Street analysts and finance experts, regardless if their perspectives may be dubious or gloomy.
After all, we believe by looking at the various viewpoints, whether denoting confidence, optimism, pessimism, and so forth, investors will be able to keep themselves properly guided on what they can expect from the US stock market in the coming months and be proactive.