Big news!
The U.S. employment data for August was released, with only 99,000 new jobs, far below the expected 145,000, the lowest level since October last year.
This data triggered market speculation that the Federal Reserve would cut interest rates by 50 basis points in September, and the probability quickly rose to 45%.
The stock market reacted very positively: after the opening of the U.S. stock market, the Nasdaq and S&P 500 performed strongly, and the Nasdaq rose by more than 1%. Technology stocks and Chinese stocks also rose, and the market was booming!
The Fed is paying close attention to the data: this Friday's non-farm payrolls report and next Wednesday's CPI data will be key.
If these data are still not as expected, the Fed may take more aggressive interest rate cuts, and a 50 basis point cut is not impossible!
ADP data showed that although the pace of hiring has slowed, fewer industries have laid off, and jobs in education, construction and finance are still increasing.
However, the number of first-time unemployment claims has declined, and the market is slightly relieved.
For the Fed's September interest rate meeting, the market generally expects a rate cut, but the specific range is not yet determined, whether it is 25 basis points or 50 basis points.
San Francisco Fed President Daly has said that the extent of the rate cut will depend on the upcoming economic data.
In general, the Fed's rate cut decision is about to be announced, and everyone is waiting nervously! The data on the employment market will have an important impact on the Fed's next move, so let's wait and see!
