Yahoo Finance Daily
Stocks slide as fresh jobs strength adds to Fed hike consensus: Stock Market News Today
Thu Jul 06 2023Description
The episode covers the stock market reaction to strong labor data, the Federal Reserve's interest rate outlook, labor market data, impact on home affordability, and company news.
Insights
Stocks Tumble on Labor Data
The release of strong labor data led to a significant drop in stock prices.
Federal Reserve Interest Rate Expectations
Almost all policymakers are in favor of more interest rate increases in 2023, leading to a high probability of a rate hike at the Fed's July meeting.
Positive Labor Market Data
ADP private sector payrolls exceeded expectations, while layoffs and jobless claims remained low. Non-farm payrolls for May are expected to rise and the unemployment rate is projected to decrease.
Impact on Home Affordability
Mortgage rates nearing 7% have negatively affected home affordability.
Company News Highlights
Sweet Green stock saw a significant increase after Bank of America upgraded its shares. Ford reported higher sales, driven by the success of its F-150 pickup line.
Chapters
- Stock Market Reaction to Labor Data
- Federal Reserve Interest Rate Outlook
- Labor Market Data
- Impact on Home Affordability
- Company News
Stock Market Reaction to Labor Data
00:00 - 04:27
- Stocks tumbled on Thursday after strong labor data spurred fears around further Federal Reserve interest rate hikes
- The S&P 500 closed down about 0.8%, while the Dow Jones Industrial Average fell 1.1%
- The tech-focused NASDAQ composite fell 0.8%
Federal Reserve Interest Rate Outlook
00:00 - 04:27
- Almost all policymakers backed more interest rate increases in 2023
- Markets are now seeing a 95% chance of a hike at the Fed's July meeting
Labor Market Data
00:00 - 04:27
- ADP private sector payrolls came in well above estimates
- Layoffs, load and jobless claims remained relatively low
- Non-farm payrolls for May are set to rise by 225,000, while the unemployment rate is expected to decrease to 3.6%
Impact on Home Affordability
00:00 - 04:27
- Home affordability took another hit as mortgage rates neared 7%
Company News
00:00 - 04:27
- Sweet Green stock gained as much as 14% after Bank of America upgraded shares of the first casual salad chain
- Ford reported second-quarter sales rose from a year ago, with strength coming from its F-150 pickup line