Fall in the Stock markets after Jobs Report
S&P 500 drops 1.6% after data show employers added jobs at a healthy but slower clip
The S&P 500 was 0.9% lower after a report showed employers hired more workers last month than economists expected.
Why did this happen?
The answer is inflation. With more than expected jobs added the need for workers ultimately increased and when the supply of jobs is high and the number of workers is low we see higher negotiation power for the employees and hence increased salary that ultimately increases the inflation.
Why did the Stock market fall?
The effect of the jobs report on the market means the inflation didn’t decrease as was expected by Wall Street so the FED rate hikes are still very much in play and this puts uncertainty in the market that the traders do not like.