The US labor market is making headlines! The latest news has sent shockwaves through the financial markets, with stocks tumbling, bond yields soaring, gold prices dropping, and the US Dollar flying high. With the unemployment rate at its lowest since 1969, it looks like the Federal Reserve may be done with rate cuts for the year.
Dennis DeBusschere, founder of 22V Research, calls the new data “extremely hawkish”. Bloomberg Intelligence Chief US Interest Rate Strategist Ira Jersey agrees, saying the strong payrolls report may be the data point that convinces the market the Fed won’t be cutting this year. As a result, the 10-year Treasury rate could top 3.75% again, and the two-year note could reach 4.4%.
Jeffrey Rosenberg, a senior portfolio manager at BlackRock Inc., said on Bloomberg TV: “This is a reminder of what Powell tried to say, but the market wasn’t listening.” It looks like the market is finally paying attention, and investors are bracing for the impact of higher interest rates.
The latest news from the US labor market has sent shockwaves through the financial markets. While stocks tumbled, bond yields soared, gold prices dropped, and the US Dollar flew high. With the unemployment rate at its lowest since 1969, it looks like the Federal Reserve may be done with rate cuts for the year. It’s a reminder of the power of economic data, and the impact it can have on the markets.
Source: www.zerohedge.com