US Stock Market: Weak July Jobs Data Dents Expectations for September Fed Rate Hike
A weak July jobs report eased rate-hike fears and helped lift the S&P 500 to three new highs last week, analysts said.
- On Friday, the S&P 500 rallied above 7750 following a soggy jobs report that dampened expectations the Federal Reserve would soon lift interest rates.
- The market's July momentum bust included the liquidation of hedge fund Situational Awareness after its leveraged AI-hardware positions unwound, serving as the offering that frequently precedes a market low.
- Corporate earnings are tracking to rise 30% over last year, while $750 billion spills into the economy via AI capex; Alphabet and Amazon reported $140 billion in unrealized gains from Anthropic and SpaceX investments.
- Trader sentiment has reheated quickly based on measures from Market Vane and Bank of America, though experts warn companies risk 'over-earning' by pulling forward demand.
- Despite reassuring statistics showing 100% returns over any 20-year span, investors should expect a 'lost decade' of lousy performance over a lifetime; Jeff DeGraaf of Renaissance Macro Research warns historical extremes indicate the market is overbought.
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Markets are still trying to figure out the Fed’s next move
Volatile job numbers, stubborn inflation and changes to the Fed’s communications style are all stirring up uncertainty in markets and raising the stakes for upcoming economic data releases — including this week’s inflation report.
Santoli: Stocks return to their winning ways. But was July's brief pain enough to satisfy the market gods?
The stock market's winning history – a hit rate of 100% over any past 20-year span - is well understood. But investors recognize – or need to – the genuine hazard in equities.
Investors' eyes are on inflation this week after dismal jobs report
Bloomberg/Getty ImagesJuly's inflation data will be front and center this week after a poor July jobs report.If inflation is cool enough, the Fed may be less inclined to raise interest rates this year.Sign up for First Trade, Business Insider's daily markets newsletter.The stakes just got higher for this week's inflation report.The US economy lost 23,000 jobs in July, the Bureau of Labor Statistics reported on Friday, perhaps signaling that the …
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