financetom
Economy
financetom
/
Economy
/
Job Creation Tumbles in July, Higher Unemployment Strengthens Case For Interest Rate Cuts: Is The Fed Slow On The Draw?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Job Creation Tumbles in July, Higher Unemployment Strengthens Case For Interest Rate Cuts: Is The Fed Slow On The Draw?
Aug 2, 2024 6:01 AM

The pace of job creation slowed in July, signaling cooling labor market conditions and strengthening the case for imminent interest rate cuts as early as next month.

The U.S. economy added 114,000 jobs last month, down from the revised figure of 179,000 jobs in June, according to official data released Friday.

July Employment Situation: Key Highlights

Nonfarm payrolls came in at 150,000 last month, a slowdown of 63,000 from June, and well below the economist consensus estimate of 175,000 according to TradingEconomics.

The unemployment rate rose from 4.1% to 4.3%, contrary to expectations of it remaining unchanged.

Wage growth showed further signs of cooling, with average hourly earnings rising by 0.2% month-over-month, down from 0.3% in June and slightly below expectations.

On an annual basis, average hourly earnings were 3.6% higher compared to June 2023, down from 3.9% in June and below expectations of 3.7%.

July 2024ConsensusJune 2024
Nonfarm payrolls 114,000 175,000 179,000
(downwardly revised from 206,000)
Unemployment rate 4.3% 4.1% 4%
Average hourly earnings (m/m) 0.2% 0.3% 0.3%
Average hourly earnings (y/y) 3.6% 3.7% 3.9%

Market Reactions

Treasury yields dropped sharply on Friday as investors turned to safe-haven assets in response to escalating economic and geopolitical risks.

The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF , tumbled 0.7%.

Futures on U.S. indices traded sharply in the red, reflecting rising risk aversion in equity markets. Contracts on the S&P 500 Index were 1.6% lower at 8:35 a.m. in New York, while those on the Nasdaq 100 were 2.3% lower.

On Thursday, tech stocks, as monitored through the Invesco QQQ Trust tumbled 2.6%. The SPDR S&P 500 ETF Trust ( SPY ) fell 1.4%.

Read Now:

Wall Street Analyst Predicts End To Tech Rout: ‘Much Of The Selloff May Be In The Rearview Mirror’

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Zoomed Out | Critical Minerals — why India's current strategy to become self-reliant is so vital
Zoomed Out | Critical Minerals — why India's current strategy to become self-reliant is so vital
Nov 29, 2023
Internationally, there are genuine security concerns related to the criticality in building more diverse and dependable value chains for critical minerals, about their environmental and social sustainability, and technological challenges. While, India has taken the right steps for creating an ecosystem for accelerated exploration and production of critical and new age minerals, observes FICCI Mining Committee Co-Chair Pankaj Satija.
JPMorgan has a new way to gauge its green progress
JPMorgan has a new way to gauge its green progress
Nov 15, 2023
As the largest energy banker, JPMorgan is a frequent target of criticism over Wall Street’s role in the climate crisis. At the same time, the bank is a leading US arranger of green bonds, making it vulnerable to Republicans seeking to protect the fossil fuel industry.
India looking into 'freak' incidents like damage to Sikkim's Chungthang dam: RK Singh
India looking into 'freak' incidents like damage to Sikkim's Chungthang dam: RK Singh
Oct 18, 2023
Stressing on the need to have quick ramp up and ramp down energy sources for grid balancing, the minister described hydroelectric power's role as essential in the path to energy transition as wind energy is intermittent and the sun doesn't shine 24×7.
In fight to curb climate change, a grim report shows world is struggling to get on track
In fight to curb climate change, a grim report shows world is struggling to get on track
Nov 14, 2023
The State of Climate Action report released on Tuesday by the World Resources Institute, Climate Action Tracker, the Bezos Earth Fund and others looks at what's needed in several sectors of the global economy power, transportation, buildings, industry, finance and forestry to fit in a world that limits warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over pre-industrial times, the goal the world adopted at Paris in 2015. The globe has already warmed about 1.2 degrees Celsius (2.2 degrees Fahrenheit) since the mid-19th century.
Copyright 2023-2025 - www.financetom.com All Rights Reserved