
AI-generated summary
The US jobs report is an important indicator of the Federal Reserve's monetary policy. After initially reporting a job loss of 23,000 jobs in July, the data was later revised to an increase of 21,000 jobs. The current report shows a strong recovery with 162,000 new jobs.
US employment in August rose more than economists expected. Concern is now growing in the market that the Federal Reserve could be forced to raise interest rates after all.
A street sign on Wall Street, home of the New York Stock Exchange. Photo: dpa
New York. Investors are looking at the US labor market report this Friday. It is intended to give an indication of whether the Federal Reserve can forego an interest rate hike in September. After slight gains the day before, the important indices were trading inconsistently on Friday.
The US standard value index Dow Jones lost around 0.5 percent and was trading at 53,430 points.
The broader S&P 500 fell 0.4 percent to 7,717 points.
The technology-heavy Nasdaq Composite fell by around 0.3 percent to 26,492 points.
The Nasdaq 100, a reflection of the 100 non-financial companies with the highest market capitalization, is barely moving at 29,493 points.
US job market reports strong job growth
The US labor market created far more jobs in August than expected. The bottom line was that 162,000 non-agricultural jobs were created, according to the government report published on Friday. Experts surveyed by the Reuters news agency had expected 56,000 jobs. According to revised data, 21,000 jobs were created in July. A loss of 23,000 jobs was originally reported. The unemployment rate remained at 4.1 percent in August.
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“More meat than fish: the labor market data is more likely to be the deciding factor for the Fed to increase the key interest rate,” says Bastian Hepperle from the private bank Bethmann Hal. "The tipping point on the interest scale will be the upcoming producer and consumer prices. If the Fed becomes convinced that the inflation dynamic is increasing again, it can no longer stand idly by."
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The Federal Reserve will decide whether to raise interest rates in September.
Likely · Within weeks

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