This material includes forward-looking statements subject to risks and uncertainties; actual results may differ.
Labor Market Loses Momentum
Job growth slowed significantly in June, with payrolls increasing by just 57,000, while prior months were revised lower, signaling a weaker labor market than previously reported. Although the unemployment rate fell to 4.2%, the decline was driven largely by a drop in labor force participation to its lowest level since 2021 rather than stronger hiring. Wage growth remained steady at 3.5% year-over-year, suggesting inflationary wage pressures are not accelerating despite weakness in employment. The softer report reduced expectations of additional Federal Reserve rate hikes in the near term, reinforcing the view that policymakers can remain patient while monitoring inflation and economic growth.
Private Hiring Slows in June
Private employers added 98,000 jobs in June, slightly below expectations and down from May, reflecting a continued moderation in hiring. Job growth remained concentrated in education and healthcare, while most other sectors saw limited gains and leisure and hospitality hiring stayed weak. Wage growth remained stable, with workers who changed jobs continuing to receive significantly larger pay increases than those who stayed put. Overall, the report points to a gradually cooling labor market, with hiring slowing as labor supply constraints and softer demand weigh on employment growth.
SpaceX Joins Nasdaq-100
SpaceX will officially join the Nasdaq-100 on Tuesday, prompting index funds such as the Invesco QQQ ETF to purchase shares to match the benchmark, creating automatic demand for the stock. Despite its roughly $2.1 trillion market value, SpaceX will initially represent less than 1% of the index because its weighting is based on publicly tradable shares rather than total market capitalization. Index inclusion can provide near-term support for the stock as passive funds buy shares, but the impact is limited by the company's relatively small public float. Over the longer term, SpaceX's financial performance, investor demand, and future increases in its public float are expected to have a much greater influence on the stock than its addition to the Nasdaq-100.
As always, Base Wealth Management remains focused on aligning investment strategies with your long-term goals amid evolving market conditions.
