Last Week: 0.24%
YTD: 7.91%
1 Year: 25.72%
Dow Jones Industrial Average
Last Week: 0.77%
YTD: 3.15%
1 Year: 17.09%
Last Week: 1.22%
YTD: 7.65%
1 Year: 33.57%
Last Week: 0.97%
YTD: 0.85%
1 Year: 17.33%
YTD: 9.53%
1 Year: 35.20%
YTD: 5.32%
1 Year: 16.56%
Private Payroll
Private employers added 192,000 new workers in April. This was better than the 183,000 analysts had estimated for the month. It was less than the 208,000 added in March, but the step back was to be expected. Another report showed job openings continue to fall to their lowest levels since early 2021. On a positive note for inflation, wages only increased 5% from a year ago, a multiyear low. The largest sector for new jobs added was in leisure and hospitality.
The Fed Meeting
The most recent news from the Federal Reserve meeting gave little new insight into rate cuts this year. Overall economists feel only time will tell how many rate cuts we will see in 2024. Most of the analysts are now predicting one to two cuts. Chairman Powell indicated they had not seen enough progress yet regarding inflation to be able to start cutting rates. The uncertainty left markets flat after the press conference last week.
Unemployment and Nonfarm Payroll
The US economy added fewer jobs than anticipated. Nonfarm payrolls increased by 175,000 last month, well below the 240,000 estimated by the Dow Jones consensus. The unemployment rate increased to 3.9%, above the 3.8% expected. The job news sent the major US stock markets upward, in hopes this news will increase the likelihood of an interest rate cut this summer. A softer labor market and a soft wage increase may indicate the Fed will be able to start cutting rates sooner. The jobless rate is tied for the highest level since January 2022.
