Reuters, NEW YORK
A tepid June jobs report offers relief for US equities just as investors had begun to worry that excessive labor market strength might force the Federal Reserve to turn more hawkish in its fight against inflation, hobbling high-flying tech stocks that have driven this year’s rally.US job growth slowed more than expected in June and payroll gains for the prior two months were revised lower, the Labor Department said on Thursday, pointing to a cooling but still stable labor market that prompted financial markets to dial back expectations for a near-term Federal Reserve rate hike.That could buy the stock market more time, just as soaring valuations, dramatic swings in the value of trillion-dollar companies, and periodic sharp selloffs have fueled concerns that pockets might be in a bubble.
US President Donald Trump, right, delivers remarks during the swearing-in ceremony of incoming Federal Reserve chair Kevin Warsh in the East Room of the White House in Washington on May 22.
US stocks initially edged up before giving up gains, and the dollar slipped as traders pared expectations for a rate hike as early as September.“This jobs report lets anyone concerned about an imminent Fed hike to breathe a sigh of relief,” said Adam Sarhan, chief executive of 50 Park Investments in New York.
