Despite making some gains, the Dow Jones and the S & P 500 failed to end the week on top, meaning that this is the second consecutive week the markets declined.
This hasn’t happened mid-February.
And while the news isn’t good, it’s hardly bad, or surprising. Especially the market’s meteoric rise from the February lull, to it’s April high.
HPM Partners’ Chief Investment Officer Ben Pace explains that “the magnitude of the rally that you had from the mid-February lows, a little consolidation is to be expected.”
The markets are a complicated system, so there is never one thing to blame, but the recent U.S. Labor Report may have been a deciding factor.
The Labor Department reported that U.S. employers added 160,000 jobs in April. This is a good sign that America’s economy isn’t completely in the tank, but that number was significantly less than the 205,000 that analysts predicted. The good news on the job front was that while the amount of jobs created were down, job revenue was up 2.5 percent from last year.
April’s jobs report was one of the final economic indicators that that the Federal Reserve will use when deciding whether or not to increase interest rates this coming June.
The fed is notoriously hard to predict, but given the fact that the the U.S. missed their jobs prediction by 45,000, it stands to reason that interest rates will probably NOT be rising in the near future.
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