"The S&P 500 is showing notable caution as it trades close to its record highs around 6,960 - 6,970 points ahead of the U.S. employment report. The index's ability to remain at elevated levels while lacking strong upside momentum suggests that the market is neither in panic mode nor willing to meaningfully increase risk exposure. This is a typical wait-and-see posture describing investors temporarily stepping aside to assess data that could directly influence interest rate expectations."
"In the labour market, ADP recorded job gains of just over 40,000, below expectations; JOLTS job openings declined further to around 7.1 million; meanwhile, weekly initial jobless claims have stayed near the 200,000 level. Taken together, these figures suggest that the U.S. economy is cooling in a controlled manner rather than entering a sharp downturn. Given that services inflation remains sensitive to wage dynamics, any signal of an overly strong labour market could prompt the Fed to maintain a more cautious stance than currently expected."
The S&P 500 is trading close to record highs around 6,960–6,970 points while showing limited upside momentum, indicating investor caution. Investors are adopting a wait-and-see posture ahead of the U.S. employment report that could alter interest rate expectations. Recent data show slowing U.S. growth without clear recession signals: ISM Manufacturing remains below 50 while ISM Services exceeds 54. Labour indicators show ADP gains near 40,000, JOLTS openings around 7.1 million, and weekly claims near 200,000, signaling a controlled cooling. The key will be whether NFP signals sufficient cooling to permit Fed easing or a hot labour market that keeps rates higher.
Read at London Business News | Londonlovesbusiness.com
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