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Investors will be focused on Friday’s release of the September employment report after recent data suggests U.S. labor market conditions are beginning to cool.1 The jobs report is expected to show continued slowing in payroll growth with economists expecting job gains of 146,000,2 marking the fourth consecutive month under 150,000.3 The unemployment rate is expected to hold steady at 4.2%.4 The bond market doesn’t appear to need much more convincing of slower growth ahead with at least one more “super-sized” rate cut expected by year-end.5
A potential longshoremen’s strike this week could shut down ports along the East Coast, disrupting numerous segments of the U.S. economy while putting upward pressure on prices. The Biden administration is urging both sides to return to the bargaining table to minimize the risk of prolonged strike damage to the U.S. economy.
Sources:
1MarketWatch – U.S. Economic Calendar; as of 9/30/24
2,4Yahoo! Finance – Prospect of Second Big Fed Cut Hinges on Powell and Jobs Report; 9/30/24
3Bureau of Labor Statistics – Employment Situation – August 2024; 9/6/24
5Bloomberg
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