Last Wednesday's release of Job Openings and Labor Turnover Survey (JOLTS) data indicated a figure of 8.49 million job openings, slightly below analyst projections. On Thursday, in line with expectations, the Federal Reserve opted to maintain interest rates at their current levels. Additionally, the Fed has affirmed the possibility of rate hike is highly unlikely with current progress of economy.
On Friday, April's Non-Farm Payrolls (NFP) report revealed a notable decline to 175,000 jobs, down from March's revised figure of 315,000 (originally reported as 303,000) and well below the anticipated 238,000. similarly, April's unemployment rate edged up to 3.9%, a slight increase from March's 3.8%.
The weakness observed in the labor market could prompt the Federal Reserve to consider a rate cut, particularly with a 45% decrease totaling to 140,000 jobs, along with a weaker GDP growth. With the next Fed rate decision scheduled for June, expectations lean towards a potential decrease, although concerns persist regarding elevated inflation levels within the U.S. economy. Right after the labor data, the probability of rate cut in September has increased from 63% to 78%.
Looking forward to the coming week there are no significant economic events are anticipated that could serve as catalysts for market movements in both the United States and India.
Date : 05th May '24; SourceĀ - Trading Economics
LR