What will shake the market: employment report and unemployment rate
The US stock market fell again on Thursday as investors held their breath in anticipation of the long-awaited September jobs report.
There is growing concern on Wall Street that the US Federal Reserve’s sweeping move to raise rates this year will top the mark and send the economy into recession.
A tight labor market and unemployment near multi-year lows give the Fed no reason to abandon its hawkish stance, even as evidence of a cooling economy is growing, especially in the housing market and in companies where layoffs are rising.
The number of jobless claims in the US last week turned out to be slightly higher than expected, but this is not considered as strong enough evidence that the Fed should stop “putting pressure on the gas pedal.”
This week, Fed officials said the central bank intends to continue the work until it considers it complete. The Fed already signaled last month that it intends to raise rates by another 125 basis points this year.
Here are 3 events that could affect the market on Friday:
September job data
The job posting report will be released at 08:30 AM ET (1230 GMT). Analysts expect the economy to have created 250,000 jobs last month, down from 315,000 in August.
At the same time, the unemployment rate index will be released, and analysts expect it to remain the same as a month earlier – 3.7%. This is an important goal for the Fed: to “cool down” the economy without causing large job cuts. The Fed points to a still high level of open vacancies.
The labor market participation rate is another metric the Fed keeps a close eye on. The figure for August was 62.4%, and policymakers would like to see it rise to ease labor market tensions. The figure in August was the highest since April.