Stocks rise as traders await Jackson Hole and payroll adjustment stifles rate bets

• Stocks ended Wednesday as traders took in jobs data and awaited the start of the Jackon Hole conference.

• Revised jobs data showed the economy added 818,000 fewer jobs than originally forecast.

• Investors expect Powell to issue more guidance on Fed policy in Jackson Hole on Friday.

US stocks gained on Wednesday as traders awaited the start of the Federal Reserve’s Jackson Hole economic conference and considered revised jobs data from last year.

Major stock indexes traded higher, while Treasury yields edged lower through Wednesday’s session.

The Bureau of Labor Statistics has released revised jobs figures from April 2023 to March 2024, which show the U.S. economy added 818,000 fewer jobs in that time frame than originally reported.

The new figures, reflecting a weaker labor market over that period, bolstered confidence that the Fed is poised to loosen monetary policy and issue potentially steeper rate cuts than previously thought.

Markets see a 39 percent chance the Fed will cut rates by 50 basis points in September, up from less than 30 percent earlier this week, according to CME’s FedWatch tool.

“If you’re in the September rate cut camp, this data pretty much seals the deal on what (the Fed) needed to cut rates,” Jamie Cox, managing partner at Harris Financial Group, said in a communicated.

Investors were also reassured by the latest Fed meeting minutes, which showed most FOMC members thought it would be “probably appropriate” to start cutting interest rates in September as long as economic data continues to ” to appear as expected’. the report said.

That’s considerably more dovish than the tone central bankers have struck throughout the year, with Fed Chairman Powell previously saying the central bank needs more confidence that inflation is back on track before easing policy.

“Overall, though, the FOMC seems comfortable enough — and concerned enough — that the initiation of the easing cycle will help ensure that economic conditions, particularly the labor market, do not deteriorate at a marked rate,” Quincy Krosby, global chief strategist at LPL Financial, added.

Investors are waiting for Powell to speak at the Fed’s annual retreat in Jackson Hole on Friday, where the central bank chief is expected to offer more policy guidance by the end of the year.

Here’s where US indices were positioned at the closing bell at 4pm on Wednesday:

The story continues

Here’s what’s happening today:

In commodities, bonds and crypto:

• Oil futures fell. West Texas Intermediate crude fell 1.7 percent to $71.93 a barrel. Brent crude, the international benchmark, fell 1.45% to $76.09.

• Gold rose slightly to $2,552 an ounce.

• The 10-year Treasury yield fell two basis points to 3.795%.

• Bitcoin rose 3.4% to $61,563.

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