The US economy is back in focus this week with the release of the country’s latest jobs report.
SPX500 – Daily Chart
The price of the SPX 500 has absorbed three selling waves from late-2025, and that could be a sign that further breakout gains are possible.
US payrolls rose in January by the most in over a year, and the unemployment rate unexpectedly fell, but stocks fell on revisions to last year’s numbers.
Employers added 130,000 jobs last month, and the unemployment rate declined to 4.3%. That followed revisions to the prior year, which showed a marked slowdown in hiring. Job gains averaged just 15k a month last year, down from the previously reported 49k pace.
According to the recent Bureau of Labor Statistics data, nonfarm payrolls expanded by 130,000 in January. That was higher than expected 55,000 and there are hints of strength in the labor market.
Data released on Tuesday showed that US retail sales were unchanged in December, below expectations of a 0.4% monthly increase, while core retail sales, which exclude motor vehicles and parts, were unchanged.
“The latest news on consumer spending did little to change the outlook for another rate cut by the Federal Reserve, still priced in the Fed funds futures market for the next such move at the June 17 meeting,” said Gary Schlossberg, strategist at Wells Fargo.
The stock market has been weak after Donald Trump’s pick for Federal Reserve Chair surprised investors.
It is now important for markets to see weaker data that could force a move dovish take from the Fed on the next path for US interest rates.
Cleveland Fed President Beth Hammack said interest rates could remain on hold for an extended period.
“Rather than trying to fine-tune the funds rate, I’d prefer to err on the side of patience as we assess the impact of recent rate reductions and monitor how the economy performs,” she said.
