Market Rebounds After Weak July Jobs Data, Fed Rate Cut Speculation Grows
Wall Street staged a recovery Monday as the S&P 500 and Nasdaq Composite ROSE 1.3% and 1.8% respectively, clawing back losses from Friday's disappointing jobs report. The July employment data showed just 73,000 new positions added—far below the 104,000 forecast—while May and June figures were revised downward by a combined 258,000 jobs.
Despite the weak labor market indicators, traders are pricing in increased odds of a September Fed rate cut. The central bank's recent decision to maintain rates included two dissenting votes, interpreted by JPMorgan's Michael Feroli as a "job application" for future policy shifts. Chair Powell's focus on the steady 4.2% unemployment rate, rather than payroll numbers, leaves the door open for monetary easing.
