{"id":2855,"date":"2023-04-10T16:03:35","date_gmt":"2023-04-10T21:03:35","guid":{"rendered":"https:\/\/embarrdowns.com\/u-s-labor-market-still-strong-in-march-but-fed-rate-hike-expectations-remain-high\/"},"modified":"2023-04-10T16:03:35","modified_gmt":"2023-04-10T21:03:35","slug":"u-s-labor-market-still-strong-in-march-but-fed-rate-hike-expectations-remain-high","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/u-s-labor-market-still-strong-in-march-but-fed-rate-hike-expectations-remain-high\/","title":{"rendered":"U.S. Labor Market Still Strong in March, But Fed Rate Hike Expectations Remain High"},"content":{"rendered":"

The U.S. labor market continued to show strength in March as nonfarm payrolls rose by 236,000, slightly below expectations of 240,000. The unemployment rate also ticked down to 3.5% from 3.6% in February, indicating a tight labor market.[0]<\/a><\/sup> However, the numbers were not strong enough to ease expectations of at least one more rate hike by the Federal Reserve. <\/p>\n

The report had an impact on Treasury yields, as the 10-year yield hit a seven-month low on Thursday before jumping on Friday following the jobs report. On Monday, the 10-year yield traded at 3.38%, up slightly from last week’s low.[1]<\/a><\/sup> <\/p>\n

Tesla was one of the stocks hit by the report, falling over 4% in morning trading after cutting prices for all of its vehicles in the U.S. for the second time this year. However, Pioneer Natural Resources soared after a report hinted that Exxon Mobil held talks with the shale driller about a possible acquisition.[2]<\/a><\/sup> <\/p>\n

Meanwhile, Alphabet CEO Sundar Pichai announced that the tech firm would incorporate chat artificial intelligence (AI)\u00a0in its Google search engine, causing shares to advance.[3]<\/a><\/sup> Apple, on the other hand, saw its shares fall over 2% after a report showed its Q1 PC shipments fell by 40.5% year-over-year.[2]<\/a><\/sup> <\/p>\n

In economic news, wholesale inventories grew by just 0.1% in February, below estimates of 0.2%, while sales rose 0.4%, lower than the expected 0.6% gain.[4]<\/a><\/sup> The United States Census Bureau also reported that job openings fell to their lowest level since May 2021, suggesting that the labor market may have begun to weaken.[5]<\/a><\/sup> <\/p>\n

The Institute for Supply Management (ISM) also reported that its services sector index, which measures business activity across several industries, fell to 51.2% in March from February’s 55.1%.[6]<\/a><\/sup> Although the services sector is still expanding, as indicated by readings above 50%, the rate of growth has decelerated beyond the projected level.[7]<\/a><\/sup> <\/p>\n

Federal Reserve Bank of Cleveland President Loretta Mester added to the discussion by stating that the central bank will need to raise rates further to tame inflation.[6]<\/a><\/sup> <\/p>\n

Overall, the market remained volatile with the S&P 500 slipping nearly 0.6%, the Dow Jones Industrial Average down 0.<\/p>\n

0. <\/span>“Nasdaq, S&P, Dow waver as traders bake in one more Fed hike after Friday’s jobs data” Seeking Alpha, 10 Apr. 2023, https:\/\/seekingalpha.com\/news\/3955341-nasdaq-sp-dow-waver-as-traders-bake-in-one-more-fed-hike-after-fridays-jobs-data<\/a><\/a><\/p>\n

1. <\/span>“US Stocks Stumble, Treasuries And Gold Rally On Rising Recession Fears \u2013 Traders Anticipate Fed Pause In May …” Benzinga, 4 Apr. 2023, https:\/\/www.benzinga.com\/news\/earnings\/23\/04\/31650748\/us-stocks-set-to-open-higher-today-on-strong-momentum-analyst-says-next-fed-rate-decision-could-be<\/a>–<\/a><\/p>\n

2. <\/span>“Stocks fall, yields inch higher after strong jobs report: Stock market news today” Yahoo Finance, 10 Apr. 2023, https:\/\/finance.yahoo.com\/news\/stock-market-news-today-live-updates-april-10-2023-121105758.html<\/a><\/a><\/p>\n

3. <\/span>“Dow Jones Futures: Market Rally Responds To Jobs Report, Tesla Price Cuts | Investor’s Business Daily” Investor’s Business Daily, 10 Apr. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-jobs-report-tesla-cuts-u-s-ev-prices-again\/<\/a><\/a><\/p>\n

4. <\/span>“US Equity Indices Drop As Traders Reassess Fed Hikes: Rate-Sensitive Real Estate, Tech Stocks Underperform …” Benzinga, 10 Apr. 2023, https:\/\/www.benzinga.com\/news\/earnings\/23\/04\/31722957\/nasdaq-s-p-500-futures-signal-subdued-open-for-data-heavy-week-analyst-says-fed-rate-hike-pause-on<\/a>–<\/a><\/p>\n

5. <\/span>“S&P 500 Stalls at Trendline Resistance as Sentiment Sours. Where Next for Stocks?” DailyFX, 4 Apr. 2023, https:\/\/www.dailyfx.com\/news\/spx-sp-500-stalls-at-trendline-resistance-as-sentiment-sours-where-next-for-stocks-20230404.html<\/a><\/a><\/p>\n

6. <\/span>“Nasdaq falls 1% for three-day losing streak after weak economic data: Live updates” CNBC, 4 Apr. 2023, https:\/\/www.cnbc.com\/2023\/04\/04\/stock-market-today-live-updates.html<\/a><\/a><\/p>\n

7. <\/span>“Stock Market Today: Weak Economic Data Weighs on Stocks” Kiplinger’s Personal Finance, 5 Apr. 2023, https:\/\/www.kiplinger.com\/investing\/stocks\/stock-market-today-weak-economic-data-weighs-on-stocks<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. labor market continued to show strength in March as nonfarm payrolls rose by 236,000, slightly below expectations of 240,000. The unemployment rate also ticked down to 3.5% from 3.6% in February, indicating a tight labor market.[0]<\/a><\/sup> However, the numbers were not strong enough to ease expectations of at least one more rate hike by the Federal Reserve. <\/p>\n

The report had an impact on Treasury yields, as the 10-year yield hit a seven-month low on Thursday before jumping on Friday following the jobs report. On Monday, the 10-year yield traded at 3.38%, up slightly from last week’s low.[1]<\/a><\/sup> <\/p>\n

Tesla was one of the stocks hit by the report, falling over 4% in morning trading after cutting prices for all of its vehicles in the U.S. for the second time this year. However, Pioneer Natural Resources soared after a report hinted that Exxon Mobil held talks with the shale driller about a possible acquisition.[2]<\/a><\/sup> <\/p>\n

Meanwhile, Alphabet CEO Sundar Pichai announced that the tech firm would incorporate chat artificial intelligence (AI)\u00a0in its Google search engine, causing shares to advance.[3]<\/a><\/sup> Apple, on the other hand, saw its shares fall over 2% after a report showed its Q1 PC shipments fell by 40.5% year-over-year.[2]<\/a><\/sup> <\/p>\n

In economic news, wholesale inventories grew by just 0.1% in February, below estimates of 0.2%, while sales rose 0.4%, lower than the expected 0.6% gain.[4]<\/a><\/sup> The United States Census Bureau also reported that job openings fell to their lowest level since May 2021, suggesting that the labor market may have begun to weaken.[5]<\/a><\/sup> <\/p>\n

The Institute for Supply Management (ISM) also reported that its services sector index, which measures business activity across several industries, fell to 51.2% in March from February’s 55.1%.[6]<\/a><\/sup> Although the services sector is still expanding, as indicated by readings above 50%, the rate of growth has decelerated beyond the projected level.[7]<\/a><\/sup> <\/p>\n

Federal Reserve Bank of Cleveland President Loretta Mester added to the discussion by stating that the central bank will need to raise rates further to tame inflation.[6]<\/a><\/sup> <\/p>\n

Overall, the market remained volatile with the S&P 500 slipping nearly 0.6%, the Dow Jones Industrial Average down 0.<\/p>\n

0. <\/span>“Nasdaq, S&P, Dow waver as traders bake in one more Fed hike after Friday’s jobs data” Seeking Alpha, 10 Apr. 2023, https:\/\/seekingalpha.com\/news\/3955341-nasdaq-sp-dow-waver-as-traders-bake-in-one-more-fed-hike-after-fridays-jobs-data<\/a><\/a><\/p>\n

1. <\/span>“US Stocks Stumble, Treasuries And Gold Rally On Rising Recession Fears \u2013 Traders Anticipate Fed Pause In May …” Benzinga, 4 Apr. 2023, https:\/\/www.benzinga.com\/news\/earnings\/23\/04\/31650748\/us-stocks-set-to-open-higher-today-on-strong-momentum-analyst-says-next-fed-rate-decision-could-be<\/a>–<\/a><\/p>\n

2. <\/span>“Stocks fall, yields inch higher after strong jobs report: Stock market news today” Yahoo Finance, 10 Apr. 2023, https:\/\/finance.yahoo.com\/news\/stock-market-news-today-live-updates-april-10-2023-121105758.html<\/a><\/a><\/p>\n

3. <\/span>“Dow Jones Futures: Market Rally Responds To Jobs Report, Tesla Price Cuts | Investor’s Business Daily” Investor’s Business Daily, 10 Apr. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-jobs-report-tesla-cuts-u-s-ev-prices-again\/<\/a><\/a><\/p>\n

4. <\/span>“US Equity Indices Drop As Traders Reassess Fed Hikes: Rate-Sensitive Real Estate, Tech Stocks Underperform …” Benzinga, 10 Apr. 2023, https:\/\/www.benzinga.com\/news\/earnings\/23\/04\/31722957\/nasdaq-s-p-500-futures-signal-subdued-open-for-data-heavy-week-analyst-says-fed-rate-hike-pause-on<\/a>–<\/a><\/p>\n

5. <\/span>“S&P 500 Stalls at Trendline Resistance as Sentiment Sours. Where Next for Stocks?” DailyFX, 4 Apr. 2023, https:\/\/www.dailyfx.com\/news\/spx-sp-500-stalls-at-trendline-resistance-as-sentiment-sours-where-next-for-stocks-20230404.html<\/a><\/a><\/p>\n

6. <\/span>“Nasdaq falls 1% for three-day losing streak after weak economic data: Live updates” CNBC, 4 Apr. 2023, https:\/\/www.cnbc.com\/2023\/04\/04\/stock-market-today-live-updates.html<\/a><\/a><\/p>\n

7. <\/span>“Stock Market Today: Weak Economic Data Weighs on Stocks” Kiplinger’s Personal Finance, 5 Apr. 2023, https:\/\/www.kiplinger.com\/investing\/stocks\/stock-market-today-weak-economic-data-weighs-on-stocks<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2854,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2855"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2855"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2855\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2854"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}