U.S. stocks ended lower after a stronger-than-expected May jobs report, which showed non-farm payrolls increased by 272,000, significantly surpassing the forecast of 185,000 jobs. This robust job growth has led investors to dial back their expectations for imminent interest rate cuts by the Federal Reserve. Citi has adjusted its forecast for the first Fed rate cut to September from July, with Chief US Economist Andrew Hollenhorst stating the 272,000 jobs added in May are 'too strong for Fed officials to conclude that there’s enough weakness to start cutting in July.' The Labor Department's report also indicated that private payrolls rose by 229,000 and average hourly earnings increased by 0.4%, exceeding expectations. The unemployment rate and the overall economic outlook have prompted concerns that the Fed may wait longer to reduce rates, affecting market sentiment and causing Wall Street's main indexes to close marginally lower.
GOLDMAN: “.. We continue to expect the first rate cut in September, .. a second cut in December .. four more in 2025, and two more in 2026. .. “.. we think the decisions of other central banks to begin cutting on the basis of the considerable but incomplete cumulative progress… https://t.co/mCeUT8EPCy
The fed will cut rates before the end of the year . . . . . . . . . . . maybe twice https://t.co/kwUsHtwmAs
WHAT TO EXPECT FROM THE FED'S DOT PLOT: A plurality of economists expect the Federal Reserve to signal two interest-rate cuts this year while an equal number expect one or no cuts https://t.co/T5wRjKY6ma via @economics
Economists are divided over how many interest-rate cuts Federal Reserve officials will signal for 2024 at their policy meeting next week, following a pop in recent inflation figures https://t.co/ZxPF7txUgT via @economics @SteveMatthews12 @dana_morgan16 @boes_ @RanjeethaPakiam
US Fed likely to remain on pause and pare back rate cut expectations https://t.co/Xfn7ZBSTH1
Economists now expecting the Federal Reserve to begin cutting rates in September https://t.co/izGq1yEewI
Economist now expecting the Federal Reserve to begin cutting rates in September https://t.co/5rEUcDOcDm
A 41 per cent plurality of economists expect the US Fed to signal two cuts in the closely watched dot plot, while an equal number expect the forecasts to show just one or no cuts at all https://t.co/s7MmFO8lpk
America’s employers added a strong 272,000 jobs in May, accelerating from April and a sign that companies are still confident enough in the economy to keep hiring despite persistently high interest rates. https://t.co/ekpkh8WUeO
The street is throwing in the towel on a cut this summer ... *JPMORGAN CHANGES FIRST FED RATE-CUT VIEW TO NOVEMBER FROM JULY *CITI CHANGES FIRST FED RATE-CUT FORECAST TO SEPTEMBER FROM JULY September (orange) is exactly a coin toss. https://t.co/1Ze14GxE3E
Fed Seen Curbing Rate-Cutting Plans With Inflation Staying High Economists expect central bank to reduce rates in September Close call on whether Fed will signal one or two cuts in 2024 https://t.co/1KyQZxoVDS
The Bank of Canada has pivoted to easier monetary policy, but economists are split on how many more cuts to expect this year https://t.co/Ev49ge0muU
Economists are divided over how many interest-rate cuts Federal Reserve officials will signal for 2024 at their policy meeting next week in the "dot plot" -- one cut or two -- following a lack of inflation progress in the first quarter. https://t.co/Vd6pHwG993 via @economics
⚠️ JUST IN: *CITI CHANGES FIRST FED RATE-CUT FORECAST TO SEPTEMBER FROM JULY DO YOU AGREE OR DISAGREE? https://t.co/DF9Rwdadce
Economists are divided over how many interest-rate cuts Federal Reserve officials will signal for 2024 at their policy meeting next week, following a pop in recent inflation figures https://t.co/4WmNRCHMLo
🇺🇸 US Jobs Market Outstrips Forecasts ▫Employers add 272,000 posts ▫Traders push back rate cut bets ▫Treasuries yields surge ▫@senoj_erialc @marthamuir25 @kateduguid #frontpagestoday #USA @FT 🇺🇸 https://t.co/iO9aVRydSd
🚨US Jobs Report and Market Reactions 📊 US Jobs Report Highlights: Non-farm payrolls rose by 272K (vs 185K expected). Private payrolls increased by 229K (vs 170K expected). Average hourly earnings up 0.4% (vs 0.3% expected), YoY earnings grew 4.1% (vs 3.9% expected).… https://t.co/1AdDvnAgjc
WATCH: Wall Street stocks ended slightly lower in choppy trading after stronger-than-expected US jobs data pointed to a robust economy but prompted worries the Federal Reserve may wait longer to cut interest rates than many investors had hoped https://t.co/O4TdQ9wc9u https://t.co/xYrgarDSng
Wall Street's main indexes closed marginally lower after stronger-than-expected US monthly jobs data prompted worries the Federal Reserve could wait longer to cut interest rates https://t.co/4F59jC8WAK https://t.co/joR3ySiPbj
The US Unemployment Rate released this morning. Rate cut chances just dropped from 74 to 53 for September. Looks like the job market is still a little too hot for Powell... 🚨🚨🚨 https://t.co/3Kov8t4zSM
WATCH: Wall Street's main indexes closed marginally lower after stronger-than-expected US monthly jobs data prompted worries the Federal Reserve could wait longer to cut interest rates https://t.co/O4TdQ9wJZ2 https://t.co/TKVTBwVQ6F
Wall Street stocks ended slightly lower in choppy trading after stronger-than-expected US jobs data pointed to a robust economy but prompted worries the Federal Reserve may wait longer to cut interest rates than many investors had hoped https://t.co/4F59jC9uqi https://t.co/r3mWH5uWal
WATCH: The Labor Department reported non-farm payrolls in May rose by 272,000 jobs, far outpacing the average forecast of 185,000 jobs from economists polled by Reuters https://t.co/d2CJZIFGd5 https://t.co/s9YlwKVAfG
The Labor Department reported non-farm payrolls in May rose by 272,000 jobs, far outpacing the average forecast of 185,000 jobs from economists polled by Reuters https://t.co/jgtlrQq5XC https://t.co/xKiMRSa8iz
Citi pushing back its Fed rate cut forecast to September. Chief US Economist Andrew Hollenhorst says the 272K jobs added in May are "too strong for Fed officials to conclude that there's enough weakness to start cutting in July." @MorganLBrennan @Citibank #jobs https://t.co/48gQrNvBYW
Chances of a September rate cut are dropping on the back of hotter-than-expected hiring data. @grassosteve, @karenfinerman, @timseymour and @Bonawyn weigh the May jobs report and what it means for the Fed's next move. https://t.co/NxNNB4vtG9
Stock market today: US indexes drop after big May jobs report resets rate-cut outlooks https://t.co/HxJ7VVI8Y7
Strong jobs report prompts investors to dial back expectations on interest rate cuts https://t.co/9UKezuCOK2
A solid jobs report quells fears about an economic slowdown even as expectations for Fed rate-cut timings get pushed back https://t.co/IeDNpfDsfA
U.S. stocks end lower after hotter-than-expected May jobs report https://t.co/TxsnNRJ8ek