The strength of the labor market has been seen as a bulwark against the recession, but it has made it difficult for the Federal Reserve to control inflation.
Wall Street is trading higher this Tuesday, as two economic reports that the market was eyeing suggested that the economy of the US is cooling enough for the Federal Reserve take a break at the rise of the interest rates.
He S&P 500 it rises 0.9% and adds gains in the two sessions of the week. He Dow Jones Industrial Average scale 135 points, or 0.4%, to 34,696. The Nasdaq does so by 1.4%.
He Conference Boarda business research group, reported that the consumer confidence fell in August, surprising economists who expected levels they remained stable around the strong reading for July. Consumer confidence and spending have been closely followed amid persistent pressure inflationary.
Also this Tuesday, the US government reported that job offers they fell more than expected by economists. The report also showed that the number of Americans who quit their job fell sharply for the second consecutive month, clear indications that the labor market it’s getting cold in a way that could reduce inflation.
Wall Street: the data that the market analyzes
The strength of the labor market has been considered a bulwark against recession, but it has made it difficult for the Federal Reserve to control inflation. The central bank is likely to welcome the latest data as fewer job offers and people quitting ease the pressure on employers to raise wages to find and retain workers.
However, the week looks busy, since investors and economists They have several important economic reports pending. On Wednesday, the government will offer another update on the US gross domestic product. And later on Friday, it will publish its monthly employment report for the month of August.
An update is expected on Thursday inflation keywhen the Government publishes consumption and personal spending in July. It is the inflation measure preferred by the Federal Reserve And it’s been cooling for months. In June it was reduced to 3% and a year ago it reached 7%.
The Fed has spent more than a year raising its main interest rate to its highest level since 2001, in an effort to bring inflation back to its 2% target. The central bank kept rates stable at its last meeting and Wall Street is betting that it will do the same in September.
Source: Ambito
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