Could lower jobs number mean lower interest rates?Posted 06/07/2019 9:12AM CT |
The U.S. stock futures rallied this morning after the May jobs report came in way below the forecast. Analysts were expecting employers to have added 185,000 jobs last month after a huge number in April of 263,000, but only 75,000 jobs were created last month according to the Labor Department. The unemployment rate remained at its lowest level since December 1969, 3.6 percent. This poor number could put some weight on the Federal Reserve to lower interest rates due to a slowing of the U.S. economy. The market is placing a 25 percent chance of a rate cut at the June Meeting. According to payment processor ADP, the jobs report follows the smallest increase in private-sector employment in nine years which showed that it added 27,000 non-farm jobs in May.
Support is coming in today at 282600 and 280000 with resistance around 286700 and 288000.
E-mini S&P 500 Jun ’19 Daily Chart