The US unemployment rate dropped to 4.2% in June, its lowest in a year. However, this decline is attributed to a significant exodus of workers from the labor force, with participation falling to its lowest point since March 2021, raising concerns among economists.
The June jobs report, weaker than expected, led to strengthening stock futures and falling Treasury yields, signaling a less hawkish Fed. OpenAI considered a US government stake, while Palantir, Nvidia, Meta, Honeywell, airlines, DuPont, General Mills, and Cardinal Health saw significant analyst actions and market movements.
Goldman Sachs predicts the June jobs report could exceed expectations, potentially adding 40,000 jobs due to the World Cup's impact, particularly in hospitality and business services. While overall hiring may slow, World Cup cities saw less of a decline than other cities.
Rolling coverage of the latest economic and financial newsUK bond prices have now rallied, after Keir Starmer pledged not to resign and analysts suggested Labour was not doing as badly as feared in the council elections.The yield (or interest rate) on benchmark 10-year bonds has dropped by 2.6 basis points (0.026 of a percentage point) to 4.894% this morning.No, I’m not going to walk away and plunge the country into chaos. We were elected to deal with these challenges and that’s what we will do. Continue reading...
