Rising unemployment good for market π
U.S. job growth totaled 175,000 in April, much less than expected, while unemployment rose to 3.9% Dow futures jump 500 points as weak jobs report sends yields lower 10-year Treasury yield dives below 4.5% as unemployment rate rises to 3.9%
Bad news is good news to Wall Street LoL, a bunch ba$tards there
Wait till OP loses their job.
Yeah, the agent that matters is the Fed. When unemployment goes up, they have increased pressure to lower interest rates, so stocks go up.
As far as the market is concerned, bad news is good news, as it desperately wants lower interest rates.
Higher unemployment = increased suicide/deaths. If people stopped buying bullshit Temu items and overpriced coffee weβd probably be doing better. But hey when everything is high col wise people spend as a treat for themselves.
I'm long Temu's parent- PDD
Stocks going up on bad news might fade next week. This was not a good report. It shows the economy is getting weaker and more people are losing their jobs. Hope fed gets ahead of it before it gets ugly.
Main point is all the high earners should be laid off and hired back low wages. Thats the way to control this inflation. Sundar is already doing it. Other big tech will also follow in coming months in the rest of the year.
Inflation is not coming down this year and will likely go back up above 4%
π
Correct, we need people to stop spending, not having a jobs convinces people to stop spending
Rising unemployment also leads to rising crimes but market want rate cut
True. Obviously its preferred people stop spend without being unemployed but Fed doesn't really have a tool like that.