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05/07/24
185
Wall Street Mixed as Nonfarm Payrolls Indicate Economy Cooling Slowly
On Friday, U.S. stocks were mixed as investors digested indications of the labor market cooling slowly, giving the Fed food for thought as it attempts to curb inflation.
The NASDAQ Composite climbed 60 points or 0.3%, the S&P 500 gained 6 points or 0.1%, and the Dow Jones Industrial Average traded 30 points, or 0.1%, lower.
In June, the economy in the U.S. added more jobs than expected, although the number was lower than the previous month, indicating a possible easing in labor demand in the world’s biggest economy.
According to Friday’s Labor Department data, last month’s nonfarm payrolls were at 206K, down from May’s 218K. The reading for May was also revised heavily lower from the initial level of 272K, while April’s was decreased by 57K to 108K.
Economists had expected the June number to be at 191K.
The unemployment rate edged up to 4.1%, the highest level since Nov. 2021 and higher than expectations that it would be the same at the May number of 4.0%.
Data earlier in the week showed that last month, private payroll additions eased, and the quits rate was steady, indicating possibly decreasing wage pressures.
In theory, momentum leaving the jobs market may contribute to easing inflation.
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