SPY - May Payrolls Surge Hot Wages Unemployment Hits 4% Rate Cuts Pushed Back

2024-06-07 09:45:00 ET

Summary

• 272,000 jobs were created in May, exceeding expectations of 180,000.
• The Unemployment rate rose to 4% from 3.9% - the highest since early 2022.
• Wage growth increased by 0.4% sequentially, reaching a 4.1% year-on-year increase, both above estimates.
• Odds of a September rate cut were pushed back following the hawkish labor market report.
• More key data is on tap next week, including May CPI and a Fed Rate Decision.

The May 2024 NFP report revealed that 272,000 jobs were created last month, sharply above the consensus forecast of just 180,000. It was the 41st consecutive month of job increases. The unemployment rate actually ticked up a tenth of a percentage point to 4.0% from 3.9% last month - the jobless rate had remained under 4% going back to early 2022. Non-farm private payrolls increased by 229,000, significantly above the 165,000 expectation, while revisions to the previous two months were -15,000....

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