The United States' job numbers have largely been at the core of sustaining some momentum in the US economy, which otherwise has been struck by a perception dilemma. However, as per recent reports, US job growth was weaker than what was initially reported.
Job Data Weaker Than Understood
This comes at a crucial juncture for the country, which is wary of inflation numbers. Inflation is one of the biggest factors behind the stagnant interest rates, which has remained a factor in the country's policies and politics
Every year, the United States Bureau of Labour Statistics revises the data from its monthly survey. It then compares March employment levels to those reported by the quarterly census of employment and wages program.
According to the United States Bureau of Labour Statistics' preliminary annual benchmark review of employment data, there were 818,000 fewer jobs in March of this year than previously recorded.
In the recently concluded FOMC meeting, the US Fed Chair Jerome Power indicated towards a rate cut, possibly in the month of September. However, whether these developments will impact the decision, is something that remains to be seen. |
Rate Cuts On Horizon?
In an election year with monumental repercussions, this data could be used for political narrative building.
In the recently concluded FOMC meeting, US Fed Chair Jerome Power indicated towards a rate cut, possibly in the month of September. However, whether these developments will impact the decision, is something that remains to be seen.
Amidst this, it also needs to be noted that one of the Fed's biggest concerns, the inflation rate, has reached favourable territory. The most recent CPI data for the month of July indicated that the inflation rate dipped to 2.9 per cent, down from the previous month (June's) 3 per cent inflation rate.
US Markets Close In Red
Amidst all this development, American Markets ended the day's trade on Thursday, August 23, with losses. The oldest of the indices, the Dow Jones Industrial Average, closed at 40,712.78, declining by 0.43 per cent or 177.71 points.
The S&P 500 was no better, as the index lost 0.89 per cent or 50.21 points, dropping to 5,570.64, thereby failing to touch the 52-week high.
This, however, was the worst an index could do on Thursday, as Nasdaq ended the day with more losses than the aforementioned indices. Nasdaq Composite thanks to dip in tech stocks, ended the day on 17,619.35, tumbling 1.67 per cent or 299.63 points.
