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Back To September
September starts with a bang and the bears sweep the leg of the bulls. The signals have shifted significantly, let’s review the changes.
Next Week’s Watchlist
Focus on follow-through in these sectors and stocks to take advantage of the volatility that September is serving up.
The Labor Market
We received a lot market-moving labor data this week. The ADP’s non-farm employment change showed that companies only hired 99,000 workers last month, much lower than the 140,000 forecast. August was the weakest month for both job growth and job openings since January of 2021. So far, 2024 is the slowest year for hiring since 2005.
The Fed has been keeping a close eye on the strength of the labor market and whether the economy is comfortable to withstand a rate cut. These economic releases also make a huge difference in predicting market moves. Weak data is sending markets into a spiral, while strong data encourages a bullish market trend.