U.S. employers added 206,000 jobs in June, slightly below the revised 218,000 added in May but more than expected. This news may please the Federal Reserve, which is keeping an eye on signs that inflation is easing. Comerica Wealth Management CIO John Lynch is encouraging investors not to bail from market rallies just yet.
Following the job report, U.S. stocks rose with the Dow Jones, S&P 500, and Nasdaq Composite Index all showing gains. Average hourly earnings rose 3.9% year-over-year, in line with estimates. The hiring surge was seen in government, social assistance, and healthcare sectors, while retail and manufacturing lost workers. The ADP report showed that companies added 150,000 jobs last month, lower than the 160,000 gain expected by economists and down from the revised 157,000 figure in May. Both job reports are closely watched by the Federal Reserve as they consider when to begin a rate-cutting cycle.
Federal Reserve Chairman Jerome Powell has emphasized the need for inflation to be lower before considering rate cuts