Stocks Rise on Jobs Miss, Market Dial Back Fed Hike Bets, More

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Why did U.S. stocks jump after the July jobs report miss?

Caroline Hepker 0:00
AI is entering its most consequential phase where scale, safety, and sovereignty will determine who leads and who lags. Join Bloomberg Tech in London on November 2nd and 3rd as global leaders across business, finance and policy examine the defining trade-offs shaping the future of AI. Thank you to our presenting sponsor Salesforce and supporting sponsors IDA Island and Schneider Electric. Learn more at BloombergLive.com slash. Slash Tech London.
Nathan Hager 0:30
News when you want it with Bloomberg News Now. I'm Nathan Hager. We have made it to the end of the week on Wall Street. That is the sound of the Friday morning opening bell from the floor of the New York Stock Exchange. And stocks are higher at the open, with the SP 500 up a third of one percent, a gain of about 25 points. The Dow Jones Industrial Average opens higher by more than a hundred points, a gain there of about two-tenths of one percent. The tech heavy NASDAQ composite is surging at the open of three quarters. quarters of one percent, that gain around nearly two hundred points. So a jump for stocks after a surprise drop in the labor market. The July jobs report showed 23,000 positions lost last month after substantial downward revisions to the prior two months, and the unemployment rate fell to four point one percent as workers continued to leave the labor force.

How might the weaker jobs data affect the Federal Reserve’s September rate decision?

Nathan Hager 1:21
Claudia Som is chief economist at New Century Advisors.
Claudia Som 1:25
Does this remind you of anything? I mean, a y a year ago, exactly this employment report was when we had the very large downward revision the the downside surprise, the downward revisions and the BLS. A commissioner lost her job.
Nathan Hager 1:38
Claudia Som with New Century Advisors on Bloomberg surveillance, but this report could ease pressure on the Federal Reserve to hike interest rates next month. That's according to Wolf Research Chief Economist Stephanie Roth.
Stephanie Roth 1:49
If data looks somewhat softer in the next couple months, especially on when it comes to the inflation side, they're not gonna they're not they're probably not gonna want to hike in September. They're probably gonna wanna just see how the data progresses. Now that's gonna probably have to mean Core PC tracking below point two five percent roughly over the next two prints.
Nathan Hager 2:05
Stephanie Roth of Wolf Research also on Bloomberg surveillance. Now this downside surprise has Treasury yields falling. The ten year is down more than five basis points to four point six two percent, and markets are pushing bets on the next rate hike from the Fed to December now. President Trump says he'd like to see rates come down before the November midterms, but he is acknowledging it's not entirely up to Fed Chair Kevin Warsh. Bloomberg's

What impact did the jobs surprise have on Treasury yields and Fed hike bets?

Nathan Hager 2:30
Michael McKee has more on what the president had to say to Punchbowl News.
Michael McKee 2:33
He basically has been repeating what he has said for quite some time that uh it's up to Walsh to make a decision, but that he has a committee. And when he's saying that it's not up to him uh uh uh completely, it's he's referring to the fact that there are eleven other voting members of the nineteen member committee, and so Walsh can't make move interest rates by himself. That was something people talked about for a long time. The president seems to have learned that lesson now.
Nathan Hager 3:05
That's Bloomberg International Economics and Policy Correspondent Michael McKee. In the Punch Bowl interview, President Trump also said he'll keep Todd Blanch as acting attorney general if Blanche's confirmation fails in the Senate. Bloomberg government's Mave Sheehe reports another Republican has come out in opposition to Blanche.
Maeve Sheehy 3:22
Senator Lisa Murkowski said this morning that she will oppose Todd Blanche's nomination. She's a Republican in the Senate, obviously. Um and she said she did not trust that he would check the worst impulses of the administration. So it's very unclear at this point whether John Thune can scrounge up the votes he needs to get this across the finish line.
Nathan Hager 3:39
Bloomer government's mave she reports Murkowski joins Maine Republican Susan Collins in opposing Blanche's nomination. Tennessee's primary elections were a mixed bag for President Trump.

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