AFMC - Week Ahead: Markets Digest New Economic Divergence After U.S. Employment Report
2024-02-03 09:00:00 ET
Summary
- The US employment data blew away expectations, jumping by 353k, nearly twice the median forecasts.
- The week ahead is bound to be quieter.
- The simmering challenges emanating from the US commercial real estate market bubbled over.
The US employment data blew away expectations, jumping by 353k, nearly twice the median forecast. That, coupled with the 0.6% rise in average hourly earnings, which was also twice expectations, helped drive home the Federal Reserve's reluctance to endorse what had been market speculation of a March rate cut and an aggressive rate cutting sequence.
The dollar had softened as US rates eased following the FOMC meeting and new strains among regional banks (and some foreign banks with exposure to the US property market), but the jobs data turned things around. US rates rose sharply, and the greenback rebounded. US regional bank shares stabilized....
Week Ahead: Markets Digest New Economic Divergence After U.S. Employment Report