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CEO’S CORNER Twitter & NPR
Investors are in a Catch-22 The Job Market Over
Ahead of Friday's employment report, fears about inflation, the economy, and the labor market dominate the stock market. Even though the stock markets will be closed on Good Friday, investors will still be watching early for one of the year's most important jobs reports.
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Approximately 240,000 new jobs were created by American employers in March, according to experts surveyed by Reuters. Investors are concerned that a positive jobs report, along with potentially negative inflation data that will be released the following week, could push the Fed to hike interest rates at their next meeting on May 3 in an effort to tame skyrocketing prices. Increasing the unease: The jobs statistic has above expert projections in each of the last four months. 11 most recent reports.
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The labor market is still healthy despite the massive layoffs that have hit the banking and tech industries. According to the Bureau of Labor Statistics, employers added over 4.3 million jobs in the 12 months leading up to February, reducing the jobless rate to a 53-year low. The Fed's task of reducing inflation has grown more challenging due to the robust job market. Even while other areas of the economy have showed indications of faltering, a combination of strong hiring and increased pay has placed pressure on pricing. An inflection point in the job market seems to have been reached. This week's JOLTS report from the Labor Department showed that hiring was starting to slow down by employers. However, the rate of resignation increased, a sign that employees are confident. about quitting a job and getting a new one.
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The stock market's volatility is being exacerbated by the contradictory signals. Interest rate-sensitive tech companies are on a three-day losing streak following an outstanding first-quarter surge as investors grow increasingly anxious that the Fed would be obliged to hike rates even though the economy may be heading toward recession. Jamie Dimon, chief executive officer of JPMorgan Chase, stated last week in in his annual letter to investors that "the stock market is down and the market's odds of a recession have increased." The significance of Friday's jobs figures is increased by the recession forecasts. Given the importance of the payroll report in relation to the recession argument, Quincy Krosby, chief global economist, believes that markets being closed on Friday for the release of the report may be a positive thing.
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