Stocks and Cryptos Rally as Weak Jobs Report Energizes Markets
The U.S. stock market experienced a positive shift this week, courtesy of a weaker-than-expected jobs report in August. The S&P 500 and Nasdaq led the pack with noticeable gains.
Stock Market Rebounds:
The S&P 500 climbed 0.4%, reaching an all-time high of 6,537, while the tech-focused Nasdaq surged by 0.9%. The Dow Jones also saw a minor boost, adding 50 points. This momentum was fueled by softer labor statistics, hinting at a slowing U.S. job market.
The Bureau of Labor Statistics’ latest report revealed that the U.S. economy created just 22,000 jobs in August—a far cry from the 75,000 initially projected. Additionally, the unemployment rate edged up to 4.3%, and the broader jobless rate ticked to 8.1%. These numbers suggest a labor market under pressure, mirroring the economic downturn seen since mid-2020.
Cryptocurrencies Surge:
The upbeat气氛 spread into the cryptocurrency sector too. Bitcoin (BTC) leaped by 3%, crossing the $113,000 mark, and Ethereum (ETH) advanced nearly 2% to above $4,470.
Fed Rate Cut Anticipation:
- Wall Street experts now predict a likely 25-basis-point interest rate cut by the Fed next month.
- Some insiders, like top economist Mohamed El-Erian, speculate a possible 50-bps cut might also be considered.
This new prediction could push major stock indices towards a strong finish, with the S&P 500 possibly reaching the 6,600 mark by year-end.
