China Responds To Pelosi Visit With Sanctions And A Show Of Military Force
(Friday Market Open) The long-awaited Employment Situation report was released before the market open and showed the economy added a lot more jobs than expected. Potential Market Movers Analysts had forecasted nonfarm payrolls to increase by 250,000 jobs—instead they were up 528,000. The unemployment rate fell to 3.5%, significantly lower than the forecasted 3.6%. Notably, the participation rate fell, which helped to increase the unemployment rate. Average hourly earnings rose 0.5% in July and 5.2% year-over-year, which were both above their respective forecasts of 0.3% and 4.9%. An increase in jobs while GDP has been falling could suggest that productivity is in decline. Productivity is an important economic indicator because it often correlates to wealth increases. Lower productivity will also make it harder for prices to come down as labor costs are likely to increase. The 10-year Treasury yield (TNX) shot up past 2.78% as investors fear the hot jobs market will prompt the Federal Reserve to be more aggressive in raising rates.
China Responds To Pelosi Visit With Sanctions And A Show Of Military Force
(Friday Market Open) The long-awaited Employment Situation report was released before the market open and showed the economy added a lot more jobs than expected. Potential Market Movers Analysts had forecasted nonfarm payrolls to increase by 250,000 jobs—instead they were up 528,000. The unemployment rate fell to 3.5%, significantly lower than the forecasted 3.6%. Notably, the participation rate fell, which helped to increase the unemployment rate. Average hourly earnings rose 0.5% in July and 5.2% year-over-year, which were both above their respective forecasts of 0.3% and 4.9%. An increase in jobs while GDP has been falling could suggest that productivity is in decline. Productivity is an important economic indicator because it often correlates to wealth increases. Lower productivity will also make it harder for prices to come down as labor costs are likely to increase. The 10-year Treasury yield (TNX) shot up past 2.78% as investors fear the hot jobs market will prompt the Federal Reserve to be more aggressive in raising rates.