Investors Brace for Fed Rate Cut as Labor Data Softens
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BTCCSquare news:
European and U.S. markets held steady Thursday as weak employment figures bolstered expectations of an imminent Federal Reserve rate cut. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite showed minimal movement amid cautious trading.
Private payroll numbers disappointed, while corporate layoffs hit a three-year high. Paradoxically, weekly jobless claims fell to 2022 levels—creating a mixed labor picture that traders interpret as justification for monetary easing.
Market pricing now reflects near-certainty of a 25-basis-point cut at next week's FOMC meeting. The prospect of looser policy is supporting risk assets globally, though inflation data due Friday could recalibrate expectations.
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