NFP: A sharp fall, a sharp rise to a lower level and then flat at best

The US economy gained 4.8 million jobs in June, beating expectations but data is from early June when the American country was reopening at a rapid pa  |  02/07/2020 14:45

The US economy gained 4.8 million jobs in June, beating expectations but data is from early June when the American country was reopening at a rapid pace. With a long weekend ahead, S&P 500 could suffer a pullback on Monday as investors digest the figures, FXStreet’s analyst Yohay Elam reports.

Key quotes

“The US economy gained 4.8 million jobs in June, better than three million expected, and on top of 90,000 added in revisions to previous months. The Unemployment Rate fell to 11.1%. That came on top of an increase in the participation rate from 60.8% to 61.5%. So far, everything looks upbeat. However, accounting for misclassification issues, the jobless rate would have been 12.1%. The U-6 ‘real unemployment rate’ dropped to 18%, still an elevated level.”

“High-frequency data suggests the economic situation has already begun deteriorating during June. The Nonfarm Payrolls report is far from being outdated – it shows a high watermark for the economy after the first wave. That peak is far off the pre-pandemic levels and is where the downturn begins.”

“After stock markets staged a rally worth around 20% – the best since 1998 – there is a case for a downside correction. Americans now enjoy a long Independence Day weekend, allowing investors to digest everything. In the meantime, COVID-19 cases will likely continue rising. Will stocks suffer a day of reckoning on Monday? We will know soon enough.” 

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on finance
and other asset classes for Market Insight viewers

Back

Login to Market Insight Account

Your Market Insight account gives you access to the tools that we offer our customers including our
Technical Studies & Sentiment for your accounts.

Forgot Password?

Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

Create a Market Insight's Account

Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

register_ty

Thank you!

Welcome to Market Insight family!

You have succesfully completed the registration.
We will send you an e-mail to give you some
instructions and our Terms and Conditions!
Our account representatives will be contacting you as
soon as possible. If you have any further questions
please do not hesitate to mail us via info@marketinsight.com