Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) experienced positive gains on Tuesday, demonstrating market resilience ahead of crucial inflation data set to be released later this week. Investors are keenly watching these developments as they could significantly impact market dynamics.
The market's ability to remain in the green is particularly noteworthy given that the Bureau of Labor Statistics recently revised the new job growth figures for the year ending March 2025, lowering them by a staggering 911,000 jobs. This adjustment surpassed the consensus estimate, which predicted a reduction of 700,000 jobs. This revision spans a period of ten months under former President Biden and two months under President Trump, highlighting the ongoing fluctuations in the labor market.
Historically, revisions over the past decade have varied between -0.4% and 0.3%, making the current revision of -0.6% a significant outlier. This marks the largest percentage change since 2009, raising concerns about the overall health of the labor market. “I think the economy is weakening,” stated JPMorgan CEO Jamie Dimon during a CNBC interview, reflecting on the implications of the revised job data.
Dimon also suggested that the Federal Reserve may consider lowering interest rates during the upcoming September 16-17 Federal Open Market Committee (FOMC) meeting. However, he cautioned that such a move might not yield significant benefits for the economy. Generally, rate cuts are viewed positively by investors as they can boost stock prices, but given the current economic landscape marked by high valuations and concerning macroeconomic indicators, this may not hold true this time.
Andrew Tyler, JPMorgan's Global Head of Market Intelligence, expressed in a report that the anticipated 25 basis point cut could lead to a “Sell the News” scenario. He noted that investors might pull back to reassess macroeconomic data, the Fed’s potential responses, stretched positioning, a weakening corporate buyback trend, and reduced retail investor participation.
In a related discussion, Treasury Secretary Scott Bessent echoed sentiments from former President Trump, asserting that the Fed's high interest rates are stifling economic growth. Lower interest rates typically make borrowing more affordable, potentially stimulating the economy by promoting increased spending and investment.
Meanwhile, Apple (AAPL) saw its stock close lower following the unveiling of its latest lineup of iPhones. The tech giant introduced the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and its first-ever iPhone Air. The iPhone Air, priced starting at $999, is notably Apple’s thinnest model to date, measuring just 5.6 mm. It features a 6.5-inch Super Retina XDR display, an A19 Pro chip, and a sleek titanium frame.
In summary, the S&P 500 (SPX) closed with a modest gain of 0.27%, while the Nasdaq 100 (NDX) recorded a slightly higher return of 0.33%. As we move forward, staying informed about macroeconomic events is crucial for investors. To keep up with the latest developments, utilize our up-to-the-minute Economic Calendar, where you can filter by impact, country, and more.
