"Wall Street is holding steady Thursday as the countdown ticks to an update on the U.S. job market coming Friday that could clear the way for the cuts to interest rates that investors love. The S&P 500 was virtually unchanged in morning trading. The Dow Jones Industrial Average was down 52 points, or 0.1%, as of 10:10 a.m. Eastern time, and the Nasdaq composite was flat."
"Treasury yields were also easing in the bond market following the latest discouraging signals on the job market. One report suggested U.S. employers, excluding the government, nearly halved their hiring last month. Another said that more U.S. workers applied for unemployment benefits last week in an indication of rising layoffs. Neither number is flashing a recession, and a third report on the economy came in better than expected."
"But a slowdown in the job market could push the Federal Reserve to consider cutting its main interest rate for the first time this year at its next meeting in a couple weeks. Such cuts can give the economy and job market a kickstart, though they can also push inflation higher. Until now, the Fed has kept rates on hold this year because it's been more worried about inflation potentially worsening than about the job market."
U.S. markets traded mostly steady Thursday as investors awaited a comprehensive jobs report arriving Friday that could influence Federal Reserve policy. The S&P 500 was virtually unchanged, the Dow fell about 0.1% and the Nasdaq was flat in morning trading. Treasury yields eased after reports showed private hiring nearly halved last month and weekly unemployment claims rose, suggesting rising layoffs. An ISM survey showed stronger-than-expected growth in information, wholesale trade and other services. A cooling job market could push the Fed toward interest-rate cuts after it had held rates steady because of inflation concerns.
Read at Fortune
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