WS #15267
The US economy added just 29,000 jobs in the latest period, a significant miss against the 90,000 consensus, prompting an immediate repricing of Federal Reserve policy. Equity markets, particularly the Nasdaq, rallied to record levels as investors interpreted the weak labor data as a precursor to aggressive rate cuts. This macro shift has become the primary engine for equity valuations, overriding other negative data points and driving capital into growth assets.
US Jobs Miss and Rate Cut Bets
The US economy added just 29,000 jobs in the latest period, a significant miss against the 90,000 consensus, prompting an immediate repricing of Federal Reserve policy. Equity markets, particularly the Nasdaq, rallied to record levels as investors interpreted the weak labor data as a precursor to aggressive rate cuts. This macro shift has become the primary engine for equity valuations, overriding other negative data points and driving capital into growth assets.