A rather disappointing jobs report is challenging Wall Street's optimism over looming rate cuts, as labor market weakness stirs fresh concerns about the economy.
Risk appetite returned to Wall Street on Thursday, as signs of labor market cooling in August cemented expectations that the Federal Reserve will begin cutting interest rates at its Sept. 17 meeting.
Among the economic catalysts for Wednesday’s session will be the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey results for July and the Federal Reserve’s Beige Book report.
Wall Street stumbled on Tuesday, with broad losses by midday in New York as investors turned risk-off amid mounting concerns over lofty valuations, seasonal headwinds and fiscal strains.
Investor sentiment faded on Friday as a key inflation gauge closely watched by the Federal Reserve climbed to a five-month-high, casting fresh uncertainty over the timing of potential interest rate cuts.
Alibaba shares surged over 10% in Friday’s midday trade after the company was reported to be developing a new AI chip to fill the void left by Nvidia due to regulatory hurdles.
According to a CNBC report, the Federal Reserve did not take a side in the dispute between President Donald Trump and Fed Governor Lisa Cook, but requested the court for a “prompt ruling.”
Federal Reserve Governor Christopher Waller said late Thursday that the central bank should cut the Fed funds rate now, but suggested that he would rely on incoming data to decide the pace and magnitude of future rate reductions.
