The February jobs report was released and with it came insight into how the U.S. jobs market performed last month. New jobs created during the month were 151,000, which was below economists’ estimate of 159,000. Investors will also note that unemployment for the month was 4.1%, missing estimates of 4% for February.
It’s worth noting that the February jobs report didn’t include the massive layoffs announced by the federal government last month. That’s due to the timing of the job cuts, which saw 62,242 workers eliminated. These cuts should appear in the March jobs report, which will be published on the first Friday of April The government is also trying to cut another 200,000 jobs but has to get through a legal battle before it can do so.
What the February Jobs Report Means for the Stock Market
Investors will want to keep close tabs on jobs reports as they provide insight into the state of the U.S. economy. This helps affect the decisions made by the Federal Reserve, including interest rate cuts. The latest labor data backs up the idea that the central bank won’t cut interest rates at its next meeting, which will take place on March 18 and 19.
Investors have hoped for interest rate cuts as the stock market has suffered under high rates. While the Fed has worked to reduce interest rates, inflation remains higher than the central bank wants. That’s why it’s unlikely to announce a rate cut at its next meeting.
What Stocks Are Worth Investing in During Economic Turmoil?
With high inflation, increased interest rates, an ongoing trade war, and other economic issues, investors might wonder where to turn. A solid bet is retreating to safe-haven and blue-chip stocks more likely to weather the trade war. Microsoft (MSFT) remains a safe choice with its consensus Strong Buy rating and an average price target of $508.96, representing a potential 28.24% upside.
