Yeliz Akmaca 
Today, the eagerly awaited U.S. employment data was released. Announced at 15:30, the data may play a decisive role in the direction of the markets. Stronger nonfarm payrolls and a lower unemployment rate show a robust U.S. job market. However, slower wage growth hints at easing inflation. Following the report, futures traders have ruled out a July Fed rate cut. Here are the details:
- Average Hourly Earnings (MoM)
Expectation: 0.3%
Previous: 0.4%
Actual: 0.2%
Changes in average hourly earnings are closely monitored as an indicator of wage inflation. The announced figure holds importance for the Fed’s inflation-fighting policy.
- Non-Farm Payrolls
Expectation: 111K
Previous: 139K
Actual: 147K
The non-farm payroll data is a key indicator of the overall health of the U.S. labor market. A result above expectations may indicate strong economic activity.
- U.S. Unemployment Rate
Expectation: 4.3%
Previous: 4.2%
Actual: 4.1%
Changes in the unemployment rate offer clues about the tightness of the labor market. This is critically important for the Fed’s interest rate decisions. The Institute for Supply Management’s (ISM) June survey of the U.S. manufacturing sector revealed that job losses are at their fastest pace in three months. In particular, April data indicated a significant decline, reducing employment estimates for the previous two months by a total of 58,000 jobs.
In conclusion, today’s U.S. employment and earnings data provides important insights into the overall health of the economy and the direction of the Fed’s monetary policy. While the data is closely followed by the markets, changes in wage growth and unemployment are especially critical in terms of inflation and interest rate decisions. In the coming period, how these figures will shape financial markets and consumer confidence will remain an important topic for investors to monitor. Stay tuned for updates.
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