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Posted May 3, 2024 at 9:45 am
Editor’s note: This story has been updated with additional details.
The April performance of the U.S. labor market missed expectations, providing some evidence of cooling economic momentum and potentially leaving the door open for interest rate reductions later this year.
U.S. employers added 175,000 nonfarm payrolls in April, marking a reduction from the upwardly revised 315,000 reading in March and missing the expected 238,000, the Bureau of Labor Statistics said Friday.
| Measure | April 2024 | Estimate | March 2024 |
|---|---|---|---|
| Nonfarm payrolls | 175,000 | 238,000 | 315,000 (revised up from 303,000) |
| Unemployment rate | 3.9% | 3.8% | 3.8% |
| Wage growth (YoY) | 3.9% | 4.0% | 4.1% |
The surprisingly cooler jobs report suggests looser labor market conditions in the U.S. economy, renewing investor optimism for potential interest rate cuts later this year.
Consequently, Treasury yields dropped across the board immediately after the report, reflecting investor expectations of forthcoming rate reductions. The two-year yield, which is sensitive to policy changes, slipped from 4.86% to 4.72%.
The U.S. dollar index (DXY) declined by 0.7%.
Futures on U.S. major averages trended higher during premarket trading on Friday. Contracts on the S&P 500 were 1.1% higher at 8:46 a.m., while Nasdaq 100 futures rose 1.8%.
Following the jobs report, among mega-cap stocks, Booking Holdings Inc. saw the largest rally at 0.94%, followed by PDD Holdings Inc. at 0.52%, Airbnb Inc. and Lockheed Martin Corp. at 0.4%, and Uber Technologies Inc. at 0.39%, according to data from Benzinga Pro platform.
Mega-cap stocks declining the most after the jobs report were Novo Nordisk A/S, with a decrease of 0.57%, followed by Toronto-Dominion Bank and Merck & Co, both down 0.34%, NVIDIA Corp. down 0.3%, and PepsiCo Inc. losing 0.28%.
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Originally Posted May 3, 2024 – Job Market Cools In April: Payrolls Miss Forecasts, Wages Rise Less Than Expected (UPDATED)
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