Market Commentary: More New Highs and a Jobs Surprise
What a first half it was, as the S&P 500 was down close to 20% at the April lows and incredibly have come back to new highs already, one of the fastest recoveries ever.
What a first half it was, as the S&P 500 was down close to 20% at the April lows and incredibly have come back to new highs already, one of the fastest recoveries ever.
Two U.S. economic reports provided reassuring news about the economy. The inflation trend moderated in August. Consumer price inflation (CPI) rose 0.3%, down from 0.5% the previous month and below estimates of a 0.4% increase (Figure 1). Excluding food and energy, prices increased just 0.1%.
July job openings increased to 10.9 million, up 779,000 from June. The record number suggests weaker August job growth was partly related to a low supply of workers and demand for workers remains robust.
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The U.S. economy produced just 235,000 new jobs in August, missing expectations of 725,000. Unemployment dipped to 5.2%. Average hourly earnings rose 0.6%, partly because wages continue to rise more rapidly compared to the pre-pandemic pace.
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