In a back-and-forth trading session, Wall Street's main indexes closed lower on Friday as investors analyzed the US jobs report, which revealed slower-than-expected job growth. The market participants also awaited upcoming economic data and corporate earnings announcements. As Per Government Data, the US added the fewest jobs in two and a half years in June, although wage growth remained strong, indicating tight labor market conditions. <h2>Key Highlights</h2> • US job growth slows; wage gains remain strong• Indexes end with weekly losses• Levi Strauss shares drop after company cuts outlook• Rivian shares rally after strong deliveries• Indexes down: Dow 0.55%, S&amp;P 500 0.29%, Nasdaq 0.13% Wall Street experienced a turbulent trading session, ending lower as investors reacted to a U.S. jobs report revealing weaker-than-expected growth. The market also eagerly awaited additional economic data and corporate earnings in the coming weeks. Here are the key highlights from the day: <h2>Weaker Job Growth Raises Concerns</h2> According to government data, the United States added the fewest jobs in 2-1/2 years in June, suggesting a slowdown in employment growth. However, strong wage growth indicated persistent tight labor market conditions. <h2>Investor Caution Ahead of Earnings Season</h2> The benchmark S&amp;P 500 (.SPX) initially showed strength throughout the afternoon Friday but experienced a sell-off toward the end of the session. Quincy Krosby, Chief Global Strategist at LPL Financial, explained, "Investors are more cautious going into a very important week with the beginning of earnings season and a very important inflation reading mid-week." <h2>Fed's Perspective on Jobs Report</h2> Josh Jamner, Investment Strategy Analyst at Clear-Bridge Investments, commented on the jobs report, stating, "The jobs report is consistent with what the Fed would like to see. That's not to say the mission is accomplished or the job is done. But continued cooling in the jobs market ultimately will make their lives easier." <h2>Market Performance</h2> On Friday, the Dow Jones Industrial Average (.DJI) declined by 0.55%, or 187.38 points, closing at 33,734.88. The S&amp;P 500 (.SPX) lost 0.29%, or 12.64 points, ending at 4,398.95. The Nasdaq Composite (.IXIC) dropped 0.13%, or 18.33 points, concluding at 13,660.72. <h2>Sector Performance and Weekly Losses</h2> Defensive groups within the S&amp;P 500 experienced the most significant decline, with consumer staples (.SPLRCS) falling 1.3%. Conversely, energy (.SPNY) gained 2.1%, while materials (.SPLRCM) rose 0.9%. The small-cap Russell 2000 (.RUT) performed well, ending the day with a 1.2% increase. However, major indexes closed the week with losses, contrasting the strong performance observed in the first half of the year. The S&amp;P 500 fell approximately 1.2% for the week, the Dow slid roughly 2%, and the Nasdaq dropped 0.9%. <h2>Anticipated Rate Hike and Inflation Concerns</h2> The Federal Reserve is still widely expected to raise interest rates at its upcoming meeting, following a pause in June, as job growth remains above pre-pandemic levels. Chicago Fed President Austan Goolsbee supported this notion, stating that he does not disagree with his fellow U.S. central bankers who believe that rates will need to rise a couple more times this year to curb excessive inflation. <h2>Company News</h2> In company news, Levi Strauss &amp; Co (LEVI.N) witnessed a significant decline of 7.7% in its shares after the denim clothing maker reduced its annual profit forecast. On the other hand, shares of Rivian Automotive (RIVN.O) surged 14.2% after the electric vehicle manufacturer reported better-than-expected quarterly deliveries. Additionally, U.S.-listed shares of Alibaba gained 8% following news that Chinese authorities would impose a $984 million fine on Ant Group, signifying the end of the affiliate fintech company's long-standing regulatory overhaul. <h2>Market Statistics</h2> Advancing issues outnumbered decliners on the NYSE by a ratio of 2.49-to-1, while on Nasdaq, a 2.00-to-1 ratio favored advancers. The S&amp;P 500 achieved 11 new 52-week highs and five new lows, while the Nasdaq Composite recorded 45 new highs and 63 new lows. <h2>Trading Volume</h2> Approximately 10.3 billion shares were traded on U.S. exchanges, slightly lower than the 11.1 billion daily average over the last 20 sessions. <h2>Conclusion</h2> Wall Street faced a choppy trading day, ultimately closing lower as investors grappled with disappointing job growth data. The upcoming earnings season and inflation reading further contributed to caution among market participants. While the Federal Reserve is still expected to raise interest rates, concerns about inflation and the potential impact on the jobs market continue to dominate market sentiment.

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Wall Street's main indexes closed lower on Friday following a volatile session, as investors absorbed a U.S. jobs report indicating weaker-than-expected growth. Market participants also awaited additional economic data and corporate earnings in the coming weeks

Wall Street Ends Volatile Day Lower Following Jobs Data

Wall Street Ends Choppy Day Lower After Disappointing Jobs Data

In the latest employment report, the United States recorded its slowest job growth in 2-1/2 years in June. However, the consistently strong wage growth indicates tight labor market conditions. These factors are likely to prompt the Federal Reserve to resume its interest rate hikes later this month. Let's dive into the key highlights of the report. <h2>Key Highlights</h2> <ul><li>The unemployment rate fell from 3.7% in May to 3.6%.</li><li>Hourly earnings experienced a 0.4% increase, with a 4.4% year-on-year growth.</li><li>Nonfarm payrolls increased by 209,000 in June.</li><li>The average workweek rose from 34.3 hours to 34.4 hours.</li></ul> <h2>Challenges in Job Creation</h2> The Labor Department's report revealed that the U.S. economy added the fewest jobs in 2-1/2 years during June. The data also showed 110,000 fewer jobs were created in April and May. These figures indicate that higher borrowing costs have started to impact businesses' willingness to expand their workforce. The report also highlighted an increase in the number of individuals working part-time due to economic reasons—some experienced reduced hours due to slack work or unfavorable business conditions. <h2>Strong Labor Market Despite Weakening Job Growth</h2> Although the job growth rate has slowed, it remains robust in comparison to historical norms. The data, coupled with this week's findings of an acceleration in services sector activity, suggests that the economy is far from the long-predicted recession. Sean Snaith the director of the University of Central Florida's Institute for Economic Forecasting, emphasized that while the payroll numbers hint at weakening, the labor market remains strong. He stated that the Federal Reserve's work to combat inflation is far from complete, and today's report does not indicate otherwise. <h2>Details of Nonfarm Payrolls</h2> In June, nonfarm payrolls increased by 209,000 jobs, marking the smallest gain since December 2020. This figure fell below economists' expectations, making it the first time in 15 months that payrolls missed projections. However, job growth in the year's first half averaged 278,000 per month. To keep up with the change in the working-age population, the economy needs to create 70,000-100,000 jobs monthly. <h2>Factors Driving Employment Growth</h2> Companies hoarding workers is one of the factors contributing to employment growth. This practice stems from the severe labor shortages experienced during the economic recovery from the COVID-19 pandemic in 2021 and early 2022. While higher-paying industries, such as technology and finance, are reducing their workforce, sectors like leisure and hospitality and local government education are still playing catch-up after employee losses and accelerated retirements during the pandemic. <h2>Government and Private Payrolls</h2> Government employment saw an increase of 60,000 jobs, primarily due to a rise of 59,000 in state and local government payrolls. However, government employment remains 161,000 jobs below pre-pandemic levels. Private payrolls increased by 149,000, which is also the smallest gain since December 2020. Healthcare payrolls experienced a rise of 41,000, driven by increased hiring in hospitals, nursing and residential care facilities, and home healthcare services. Construction employment saw a significant jump of 23,000 jobs, indicating a revival in the housing market after being impacted by a surge in mortgage rates. <h2>Industry-Specific Highlights</h2> Professional and business services employment also witnessed increases, although temporary help, often considered a precursor to future hiring, declined by 12,600 jobs. Manufacturing payrolls experienced a moderate rebound as the sector faced challenges due to softening demand. On the other hand, retail jobs fell by 11,200. Meanwhile, leisure and hospitality payrolls increased by 21,000 jobs, albeit slower than the first quarter. This slowdown may indicate a deceleration in demand or difficulties businesses face in finding qualified candidates, as highlighted in the Institute for Supply Management's June survey, which reported that some services businesses struggle to find suitable candidates for open positions. In conclusion, the latest employment report reveals a slowdown in job gains in the U.S. economy. However, the labor market conditions remain tight, supported by strong wage growth. While businesses may be experiencing some challenges due to rising borrowing costs, the overall employment situation remains robust. As the Federal Reserve aims to manage inflation, the decision to resume raising interest rates seems imminent. Continued monitoring of these developments will be crucial to understanding the trajectory of the labor market and its impact on the broader economy.

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In the latest economic report, the United States saw its slowest job growth in two and a half years in June. However, despite this decline, the persistently strong wage growth indicates that the labor market conditions remain tight. These factors are likely to influence the Federal Reserve to resume its interest rate hikes later this month. Let's delve into the key highlights of the report.

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Wall Street Ends Choppy Day Lower After Disappointing Jobs D...

US Job Growth Slows to Lowest in 2-1/2 Years; Labor Market R...

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