Nasdaq ticks up as downward payrolls revisions boost rate-cut hopes
Business
Nasdaq ticks up as downward payrolls revisions boost rate-cut hopes
(Reuters) - The S&P 500 and the Nasdaq edged up on Wednesday as a sharp downward revision in US jobs data for the year ended March 2024 indicated a slowdown in the labor market, propping up hopes the Federal Reserve would cut interest rates next month.
A Labor Department report showed US employers added far fewer jobs than was originally estimated for the year through March.
"A deteriorating labor market will allow the Fed to highlight both sides of the dual mandate and investors should expect the Fed to prepare markets for a cut at the September meeting," said Jeffrey Roach, chief economist at LPL Financial.
Financial markets are currently pricing in a near 70% likelihood of a 25 basis-points interest rate cut by the Fed in September, according to CME's FedWatch tool.
The focus is now on the minutes from the Fed's July policy meeting, expected to be released at 2:00 pm ET, at which Chair Jerome Powell hinted at a possible interest rate reduction in September.
Jay Woods, chief global strategist at Freedom Capital Markets, said he would look for any signs of dissension about easing policy in the Fed minutes.
