US stock indices Fate Regarding the anticipated labour market data: Markets await numerous US labour market data releases during the current week,
representing the second most important factor for the US Federal Reserve after inflation data, which showed a negative reading of about 2.8% last week.
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Significance of labour market data
Significance of labour market data:
The Significance of labour market data comes from previous statements from Fed members
indicated that the bank is not compelled to early interest rate cuts amidst improved labour market data,
contributing to the US economy’s ability to achieve growth in line with declining inflation,
which is encouraging for the US Federal Reserve’s monetary policy committee.
Expert predictions:
Experts expect a decline and negativity in labour market data to be released during trading on Friday, March 8th,
where forecasts suggest unemployment rates to remain unchanged at around 3.7%.
As for employment in the non-farm private sector, a decline to only 190,000 jobs is expected,
while the previous reading was around 320,000 jobs.
There are also negative expectations regarding wages,
with a forecast of a 0.4% decrease compared to the last reading of about 0.6%.
This has led investors to raise expectations
for the start of interest rate cuts during the upcoming May meeting due to the decline in US inflation.
labour market data
Now, all eyes are on labour market data, as a decline and weakness in the US labour market,
a driving force that could indeed prompt the Federal Reserve to cut US interest rates early this year,
may enhance the gains of US stock indices and maintain their positive momentum.
However, suppose the upcoming labour market data contradicts expectations and shows further positivity.
We might witness the opposite in that case, with major US stock indices correcting.
At that point, there could be a possibility of a decline in investors’ bets regarding the May rate cut,
which may contribute to lowering the expectations of the US bank during its upcoming meeting.
US stock indices Fate Regarding the anticipated labour market data