🔥🔥🔥Read carefully! USA Macroeconomic Data!!! 🔥🔥🔥
Today, important macroeconomic reports were released. Let’s review them and determine how they might impact the markets, the economy, future Fed decisions, and investor sentiment.
➡️ Initial Jobless Claims
⏺ Previous report: 242K
⏺ Expectations: 243K
✅ Actual: 227K
✔️ Commentary on the data: The decline in claims reflects the strength of the labor market, indicating stability in the U.S. economy. This significantly reduces the risks of a "crash" or "recession" and boosts investor sentiment. However, it might force the Fed to slow down rate cuts (a "soft landing" for the economy), which could put short-term pressure on markets and strengthen the dollar.
➡️ Manufacturing PMI (Purchasing Managers' Index)
⏺ Previous report: 47.3
⏺ Expectations: 47.5
✅ Actual: 47.8
✔️ Commentary on the data: The data came in higher than expected and the previous report, but still below 50. Any reading below 50 indicates "contraction in activity." As a result, business activity is "slowing down" (inflation is easing), but not fast enough to worry about an impending "recession" (which may be seen as positive by markets).
✅ Conclusion: The economy continues to remain "stable" leading up to the elections, with a slowdown in growth but a strong labor market. The situation is following the trajectory of ideal data and a soft landing, as previously mentioned. Stability and confidence should positively influence market growth in Q4 and the pre-holiday rally. Investors are not spooked by the strong economy and still expect a rate cut on November 7 at the Fed meeting. The dollar index has stopped rising, allowing markets to begin rallying, as I mentioned in my review! ❤️
❗️ Fasten your seatbelts, big moves ahead 🚀🍋🤝