This week, analysts are focusing on the March employment report, which will be released on Friday. Investors are looking to see if the labor market remains strong despite economic challenges, or if there are signs of a slowdown. There is speculation that higher unemployment rates could lead the Federal Reserve to lower interest rates, as mentioned by Fed Chair Jerome Powell. Analysts are particularly interested in nonfarm payrolls and the unemployment rate as indicators for future monetary policy decisions.
Analysts expect nonfarm payrolls to increase by 192,500 in March, with a slight decrease from the previous month. Hourly earnings are expected to rise by 4.1% year-over-year, while the unemployment rate is predicted to decline to 3.8%. The goal is to find a balance between strong enough numbers to indicate economic stability but not too high to spark concerns about wage inflation. Goldman Sachs analysts believe that the job gains from above-normal immigration will contribute to the employment numbers.
Some analysts believe that the importance placed on Friday’s report may be overstated and unlikely to heavily influence Fed policy. Rather, they anticipate that the timing of the first rate cut will be determined by inflation reaching the 2% target. Consumer Confidence surveys indicate that consumers are relatively positive about the labor market, which is a contrast to the economic sentiment on Wall Street. Additional jobs data is expected throughout the week, along with multiple Fed speeches and an economic outlook presentation by Powell on Wednesday.
Shares of Truth Social owner Trump Media & Technology Group plummeted after announcing significant financial losses in 2023. The company reported a loss of $58.2 million, a sharp decline from the previous year’s profit. Revenue also increased but remained low compared to the company’s valuation. Despite the poor financial results, Trump Media’s stock had been performing well but dropped 21% following the disclosures. Former President Donald Trump’s net worth also declined significantly as a result.
In California, fast food workers are now earning a minimum of $20 per hour, $4 higher than the state minimum wage. This increase is the result of efforts by workers in the fast-food industry to improve wages and working conditions. The law also establishes a fast-food council to determine annual wage increases based on inflation rates or up to 3.5%. This council will also address issues such as wage theft and worker safety, representing a significant step forward for fast-food workers in California.
