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21/08/24
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Wall Street Higher After Payrolls Revision Indicates Rate Cut
On Wednesday, stocks on Wall Street extended early gains after soft labor market data indicated the possibility of a hefty cut to interest rates in Sept.
The NASDAQ Composite rose 140 points, or 0.8%, the S&P 500 index gained 35 points, or 0.6%, and the Dow Jones Industrial Average rose 130 points, or 0.3%.
On Wednesday, investors gained confidence after data indicated that the U.S. economy during the last year added far fewer jobs than initially reported.
The Bureau of Labor Statistics revised down employment gains for March 2024 by 818K positions as part of its yearly benchmark review of payroll data.
Markets are still cautious as investors look for cues over the Federal Reserve’s intention at its September policy meeting.
The Bureau of Labor Statistics’ report on potential revisions to nonfarm payrolls data is due later today, and most economists anticipate a downward revision.
Goldman Sachs expects that between 600K and 1 million fewer jobs were created from Apr. 2023 to Mar. 2024 than reported previously. The bank did, however, state that the likely downward revision would exaggerate by how much payroll growth had been overstated.
Minutes from the Fed’s policy meeting in July are due later today, before Friday’s speech by Chair Jerome Powell at the economic symposium at Jackson Hole.
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