Here the chart of the week (COW) via the Wall Street Journal:
It shows a surprise jump in new hires from last month. After hearing a lot of layoffs at major tech firms one would expect this number to go down. Unemployment is officially at 3.7%.
The economy seems to be doing great and yet the stock market sold off because high employment means that the Fed doesn’t need to cut rates. It’s the old “good news is bad news” news.
That said, the great earnings report from the market leaders like Meta, Amazon and Microsoft will power this market higher.
All the best,
Pro Trader Today