By: Gerry Sparrow
Nasdaq, S&P Extend Runs
ADP’s employment report on Wednesday showed private-sector employers added 150,000 jobs in June—slightly slower than May’s pace—adding to investor hopes that a slowing economy may prompt the Fed to adjust short-term rates as early as September. The Nasdaq and the S&P hit their 23rd and 33rd record closes, respectively, for the year.2
Friday morning’s jobs report from the Labor Department showed 206,000 jobs added last month, which also suggested a strong-but-cooling economy. News of slower job growth, slowing wage growth, and a slight uptick in unemployment helped drive down Treasury yields, and stocks finished the short week with a strong rally. The Nasdaq and S&P both closed at all-time highs on Friday.3
Still Catching Up?
Driving much of the job growth in last week’s reports was a post-pandemic catchup effect: sectors such as healthcare and leisure/hospitality showed they are still recovering.4
The private-sector jobs data and the Labor Department report painted a similar picture of an economy creating jobs but at a slower rate than in the past.5,6
PHOTO CREDIT: https://www.shutterstock.com/g/chanawut13
Via SHUTTERSTOCK
Footnotes and Sources
2. The Wall Street Journal, July 3, 2024
3. The Wall Street Journal, July 5, 2024
4. The Wall Street Journal, July 5, 2024
5. The Wall Street Journal, July 5, 2024
6. Marketwatch.com, July 5, 2024
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