U.S. employers added 206,000 jobs in June, slightly below the revised 218,000 added in May but more than expected. The unemployment rate inched up to 4.1% from 4%. However, April and May data points were adjusted lower by a combined 111,000, indicating fewer jobs created. This news may please the Federal Reserve, which is keeping an eye on signs that inflation is easing.
Following the job report, U.S. stocks rose with the Dow Jones, S&P 500, and Nasdaq Composite Index all showing gains. Average hourly earnings rose 3.9% year-over-year, in line with estimates.
The hiring surge was seen in government, social assistance, and healthcare sectors while retail and manufacturing lost workers.
Comerica Wealth Management CIO John Lynch is encouraging investors not to bail from market rallies just yet.
Federal Reserve Chairman Jerome Powell has emphasized the need for inflation to be lower before considering rate cuts.
Market watchers are currently expecting the first rate cut to happen at the September meeting.
This reflects the uncertainty in the market as investors await further economic indicators to determine the future direction of the market.
Both job reports are closely watched by the Federal Reserve as they consider when to begin a rate-cutting cycle.