Although the stock market is starting the week with a slight recovery after last week’s significant losses, concerns persist about the cooling labor market and its impact on the economy.
The Nasdaq Composite plunged 5.8%, marking its worst weekly performance since 2022.
NYSE
Wall Street is trading higher this Monday, as it tries to recover from some of the heavy losses suffered last week. The Dow Jones Industrial Average is up 260 points, or 0.7%. The S&P 500 is up 0.8%, and the Nasdaq Composite is up more than 1%.
Boeing shares led the Dow higher, up 3.3%. American Express and Caterpillar also advanced more than 1%. The technology and communication services sectors are the top performers in the S&P 500 at the moment, advancing more than 1% each.
It should be recalled that the stock market suffered serious losses as it began its first week of trading in September, a historically difficult month for stocks. The S&P 500 fell 4.3%, recording its worst week since March 2023. The Nasdaq Composite plummeted 5.8%, marking its worst weekly performance since 2022, while the 30-stock Dow fell 2.9%.
Employment and inflation: Wall Street is getting impatient
These declines came after the August jobs report stoked fears of a cooling labor market. Economic data released Friday showed nonfarm payrolls rose by just 142,000, versus the gain of 161,000 expected by economists surveyed by Dow Jones. On the other hand, the unemployment rate fell slightly to 4.2%, as expected.
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Federal Reserve
This week, investors will be watching two key inflation reports that could influence the Federal Reserve’s decision at its next open market committee meeting. The August consumer and producer price reports are scheduled for release on Wednesday and Thursday mornings, respectively.
The market has now priced in a 71% chance the Fed could cut rates by 25 basis points at its next meeting and just a 29% chance of a 50 basis point cut, according to the CME Group’s FedWatch tool.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
