After presenting the August jobs report and showing economists’ expectations, US stocks experienced a slight fall.
Specialists affirm that the loss of jobs and the lack of an estimated increase in payroll for August, further delay the plans to reduce the budget for benefits until the month of November or even later.
The report states that the United States only added 235,000 payrolls in August, a well below figure and is not even close to the 733,000 jobs that economists experts estimated would be added.
In a largely optimistic scenario, it has been disappointing that expectations were not met, which affects stocks. A result that takes place in the face of reality reflects the unemployment rate that decreased to 5.2% compared to 5.4%, before the estimates.
Many claims that the new appearance of the Delta variant of covid 19 has greatly influenced workers’ return to the job market, which continues to delay recovery.
Nevertheless; Due to the numbers, the report has raised more hope for stakeholders that the Fed can continue to support the economy for longer, as they get closer to the estimated employment figures.
Faced with this assumption, the FED ensures that people have begun to return to their sources of employment. And while the number of the current August report is disappointing, he expects the next reports to be more encouraging, as profits will be curtailed in the coming months anyway if August does not spoil them.
All are focused on the recovery of employment, while the report clearly affects some indicators. The US indices were located as follows this Friday morning:
Dow Jones industrial average: 35,388.18, 0.16% less (55.64 points)
Nasdaq Composite: 15,298.37, down 0.23% and S&P 500: 4,529.05, down 0.17%
Principal Global Investors Chief Strategist Seema Shah has said that substantial progress is being added to the very economy despite high levels of inflation. Meanwhile, the Central Bank and the Federal Reserve continue to focus on increasing and recovering jobs to reduce their asset purchases.
Meanwhile, the Fed continues to exert its stimuli to boost stocks in the short term. This and other strategies such as cutting subsidies and aid for the unemployed also make it possible to promote the recovery of jobs in the shorter term.
The good news for investors is that as long as the Fed offers any sign of remaining completely accommodating, the stock market responds to these stimuli favorably. The CEO recently said this of investment firm ZEGA Financial, Jay Pestrichelli, in response to the decline in US stocks.