Economy
The biggest economic news this week came Friday with the August jobs report, which came in much stronger than expected. The U.S. economy added 162,000 jobs during the month, well ahead of expectations for roughly 56,000, while the unemployment rate held steady at 4.1%. Prior months were also revised higher by a combined 55,000 jobs, including July, which went from an initially reported loss of 23,000 jobs to a gain of 21,000. Earlier in the week, other labor market data released by ADP had pointed to a softer jobs picture, making Friday’s report somewhat surprising. Overall, the data continue to show an economy that is holding up reasonably well, while also giving the Fed less reason to rush into additional rate cuts.
Markets
Stocks finished a volatile week little changed overall, with the S&P 500 gaining 0.09%. Stocks struggled early in the week as rising Treasury yields and a jump in oil prices tied to renewed Middle East tensions raised concerns about inflation and higher interest rates. Markets bounced back Wednesday and Thursday, helped in part by comments from Fed Governor Christopher Waller suggesting the Fed could remain patient if inflation continues to cool. Friday’s stronger-than-expected jobs report reversed some of those gains, however, as investors increased the odds of another Fed rate hike and the 10-year Treasury yield moved back toward 4.8%.
What We're Reading
- What's a Safe Withdrawal Rate after You've Already Retired? - Morningstar
- What it Takes to Build the Life You Actually Want - Ryan Holiday
Have a great weekend.
Dogwood Wealth Management