The U.S. Department of Labor’s employment report, which will be released this weekend, is expected to be the biggest watershed in the U.S. stock market.
The Fed’s rate hike has led to a series of indicators indicating that the U.S. employment sector is slowing down recently.
The U.S. stock market remained weak, with the Nasdaq falling more than 1% on the New York Stock Exchange on the 5th (local time) due to the slowdown in the labor sector.
This is because there are a series of indicators indicating that the U.S. labor market is cooling down.
On the same day, U.S. private employment information company Automatic Data Processing (ADP) announced that employment at private companies increased by 145,000 in March from the previous month. This is a decrease of more than 100,000 from February (261,000), and is far below the Dow Jones’ forecast (210,000).
The number of U.S. companies’ job openings in February, announced the previous day, also fell to less than 10 million for the first time in 21 months since May 2021, indicating that labor demand is weakening in the U.S. recently.
Against this backdrop, the U.S. Department of Labor will release an employment report on the 7th (local time). When the employment report is released, the direction of the U.S. labor market is expected to be more certain.
As a result, investors are paying keen attention to the U.S. Department of Labor’s employment report, which will be released on the 7th.
The U.S. stock market is closed on the 7th because it is Good Friday ahead of Easter, but the U.S. Bureau of Labor Statistics will release its employment report last month.
According to expert estimates compiled by the Wall Street Journal (WSJ), non-agricultural employment is expected to increase by 238,000 in March. This will be a significant decrease from the 311,000 increase in the previous month.
Experts predict that the unemployment rate will remain at 3.6 percent in March.
If even employment in the non-agricultural sector slows, the labor market will become more certain and concerns over an economic slowdown will spread further. This is expected to put great downward pressure on the U.S. stock market.
