The S&P 500 (SPX) is set to open the Thursday trading session in the green after new data showed overall U.S. job growth, although weakness in the private sector remains a concern.
Don’t Miss TipRanks’ Half-Year Sale
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
In June, nonfarm payroll jobs increased by 147,000, higher than the expectation for 110,000 jobs and increasing from the upwardly revised 144,000 jobs in May. On top of that, the unemployment rate fell to 4.1%, lower than the expectation for 4.3%. The rate stood at 4.2% in May and April.
Government Jobs Support Nonfarm Payrolls
Of the 147,000 nonfarm payrolls, government roles accounted for 73,000 jobs while private roles made up the remaining 74,000 jobs. That compares with yesterday’s weak ADP June private payrolls of -33,000 jobs compared to the estimate for an additional 98,000 jobs.
Based on the private payrolls report, it’s still too early to say if the weakness in the private sector will be sustained. However, the odds of a July Fed rate cut are decreasing following the release of the nonfarm payrolls data. There is now a 93.3% chance of no cuts, up from 76.2% yesterday and 79.3% a week ago.
Stay informed about the latest breaking news with TipRanks’ Stock Analysis and News feed.
