Wall Street Reacts to Revised Job Data, Eyes Fed’s Rate Decision and Key Inflation Reports
Wall Street Reacts to Revised Job Data, Eyes Fed’s Rate Decision and Key Inflation Reports
US stocks exhibited mixed performance on Tuesday as investors processed a significant revision to labor market data, which indicated a weaker jobs landscape than previously understood. This new information is now a critical factor influencing expectations for potential interest-rate cuts by the Federal Reserve.
On Tuesday, the Dow Jones Industrial Average managed a modest gain of 0.1%. However, the S&P 500 slipped 0.1%, and the tech-heavy Nasdaq Composite reversed earlier gains to close down 0.2%, following a strong Monday session that saw stocks reach record highs.
The Bureau of Labor Statistics delivered a more substantial downward revision than anticipated, revealing the US economy likely added 911,000 fewer jobs in the 12 months leading up to March 2025. This figure, significantly higher than the 680,000 fewer jobs economists had projected, intensifies the debate around the Federal Reserve’s monetary policy. With other indicators also pointing to a slowing labor market, traders are increasingly confident that an interest-rate cut is imminent when Fed policymakers meet next week. The immediate question now is the potential magnitude of this reduction and its subsequent impact on equity markets.
Further clarity for the Fed’s decision-making is expected with crucial inflation reports due this week. The producer price index (PPI) reading is scheduled for release today, Wednesday, followed by the consumer price index (CPI) on Thursday. These figures will be pivotal in determining whether persistent price increases could impede deep or sustained rate cuts.
In corporate news, Apple’s highly anticipated annual fall event is also drawing attention, with expectations of new device unveilings including the iPhone 17 and iPhone Air, alongside updated watches and AirPods. Analysts are closely watching whether these product introductions can generate sufficient consumer interest to drive sales, especially after a tariff-fueled buying surge earlier this year.
Elsewhere, shares of Tourmaline Bio (TRML) and Nebius (NBIS) both surged over 40% following news of respective acquisition deals with Swiss pharmaceutical giant Novartis (NVS, NOVN.SW) and tech behemoth Microsoft (MSFT). Meanwhile, Oracle (ORCL) and GameStop (GME) are set to report their earnings after the market closes today.
Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.