Weekly Outlook: Cracks Emerge In Jobs Market

April 8, 2023 | Hoya Capital

Weekly Outlook: Cracks Emerge In Jobs Market Sector Report Weekly Outlook Apr 8 Written By Alex Pettee, CFA U.S. equity markets snapped a three-week winning streak while benchmark interest rates dipped to seven-month lows after a critical slate of employment data revealed some cracking in the long-resilient labor markets. Following its strongest weekly advance in five months, the S&P 500 finished fractionally lower this week, while the Mid-Cap 400 and Small-Cap 600 each posted steeper declines of over 2.5%.

Real estate equities were among the laggards this week despite continued downward pressure on longer-term benchmark interest rates. The Equity REIT Index slipped about 1%, but Mortgage REITs gained 0.4%. The critical BLS nonfarm payrolls report showed that the U.S. economy added 236k jobs in March - slightly below expectations of 240k and marking the lowest monthly increase since December 2020. The most relevant inflation-related metric in determining the path of Fed policy - Average Hourly Earnings - was also cooler-than-expected, rising at a 4.2% annual rate and averaging 3.6% over the past quarter.

U.S. equity markets snapped a three-week winning streak while benchmark interest rates dipped to seven-month lows after a critical slate of employment data revealed some cracking in the long-resilient labor markets. Just as volatility from the regional bank crisis began to subside - and as hopes of a "soft landing" were renewed - OPEC injected fresh uncertainty into financial markets this week with a surprise production cut, which sent oil prices sharply higher and revived some concerns of prolonged inflationary headwinds.

READ THE FULL REPORT HERE Alex Pettee, CFA Comments (0) Newest First Oldest First Newest First Most Liked Least Liked Add Comment --> Preview Edit --> Post Comment… Previous Previous Inflation Week • Rates Rebound • MPW Hits Back Next Next Soft Jobs Data • Veris Office Sale • Payrolls Ahead