"It's like bad news is good news, good news is bad news, Sorkin began. You have the stock market for the most part, the NASDAQ and the S&P 500, actually going up on the back of what is genuinely bad news. Sorkin continued: Look at this employment report. It's hard to say this is great news in any way. And yet, the market is going up, in part because there's a view now that the federal reserve is finally going to lower interest rates."
"And, in fact what happened today is not just that the market's expecting an interest rate cut to come in September, this month, but also that there will be two more rate cuts this calendar year. So the the chances of that happening in terms of the way the market is handicapping that have gone up, and as a function of this sort of bad news is good news situation, you have the stock market cheering this."
The August jobs report showed only 22,000 jobs added, far below the projected 75,000, indicating a slowdown in job growth. The report was the first since President Donald Trump fired Erika McEntarfer, the Bureau of Labor Statistics' former chief statistician. Markets—including the NASDAQ and S&P 500—rose amid expectations that the Federal Reserve will cut interest rates, with traders pricing in a possible September cut and additional cuts later in the year. Commentators noted a "bad news is good news" dynamic, and analysts emphasized that rate cuts would reflect a slowing economy rather than strength.
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