On Friday morning, as investors reacted to the most recent jobs report, stock futures contracts linked to the three major indices fluctuated between gains and losses. According to the widely watched employment data from the Labor Department, US businesses employed more workers than anticipated in February, with nonfarm payrolls rising by 311,000 positions.
Even a cooler jobs report on Friday was unlikely to stop the Federal Reserve hiking interest rates further on March 22, warned Nigel Green, CEO and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations.
Nevertheless, the same report also revealed that wage growth unexpectedly slowed and unemployment unexpectedly increased to 3.6% last month, allaying some concerns that a still-tight labour market will lead to more pronounced interest rate increases. Investors were on edge due to worries about the state of the banking industry after US tech lender SVB Financial Group initiated a share sale to strengthen its balance sheet in the face of losses from bond sales.
According to recent data on jobless claims released yesterday, the number of Americans applying for unemployment benefits has increased to its highest level this year. According to another research, US firms reported a five-fold increase in the number of layoffs in February compared to the same month last year. In order to reduce inflation, the Fed is relying on higher rates to slow down the labour market.