(ABM FN-Dow Jones) The US jobs report released on Friday was not very bad, but there are signs of weakening. ING wrote this in response to the job figures.
In April, the United States added 175,000 jobs, where a growth of 240,000 jobs was expected.
“Perhaps Fed Chair Powell got an early look at the jobs report given his dovish-sounding press conference on Wednesday,” said economist James Knightley, referring to Powell’s press conference after the interest rate decision.
According to Knightley, it’s not a terrible jobs report, “but it is the first time in a long time that every part of the report is weaker than expected.”
According to ING, the market is therefore fully taking into account an interest rate cut of 25 basis points in September and a second cut before the end of the year, which should bring a total of approximately 50 basis points of cuts in 2024.
Just before Wednesday’s interest rate decision, only 25 basis points of interest rate cuts were priced in for 2024 as a whole, according to the economist.
The US ten-year yield fell to 4.53 percent on Friday after the jobs report, while the two-year Treasury yield fell to 4.82 percent. Earlier this week, short-term interest rates were still around 5.00 percent.
Source: ABM Financial News
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Tags: Stock market view weak jobs report revives chance interest rate cut September
