NEW YORK (dpa-AFX) – A surprisingly strong US job market report for the month of July weighed moderately on Wall Street on Friday. The stock market is now expecting further, possibly quite aggressive interest rate hikes by the Fed to curb high inflation, especially since wage increases have not slowed down as hoped.
The Dow Jones Industrial (Dow Jones 30 Industrial) lost 0.28 percent in early trading to 32,634.26 points. After the strongest July in twelve years, in which the best-known Wall Street index rose by almost seven percent, it is now heading for a minus of 0.6 percent in the first week of August.
The market-wide S&P 500 fell 0.33 percent on Friday to 4138.21 points. The NASDAQ 100 lost 0.79 percent to 13,205.92 points. It had even increased by 13 percent in July. Its plus in the first week of August is currently 2.0 percent.
“A strong job market like today’s gives the US Federal Reserve additional arguments to keep up the tight pace in the current rate hike cycle,” said market expert Timo Emden. “On the other hand, hopes that the rapid interest rate hikes of the past few months will bear fruit on the labor market are dashed.”
In July, the US economy created significantly more jobs than expected. In addition, the increase in employment in the two previous months was revised upwards. During the Corona crisis, the labor market collapsed dramatically at times. It has now recovered significantly and companies are complaining about a shortage of workers. Wages also increased slightly more than expected, while the unemployment rate fell to pre-corona pandemic levels./ck/he
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