Recession fears flare and June jobs report looms as jittery markets head into third quarter – By Patti Domm (CNBC) / July 1, 2022
- With increased worries about a recession swirling everywhere, Friday’s jobs report and the minutes from the last Fed meeting on Wednesday should be highlights of the week ahead.
- Economists expect that employers created another 250,000 jobs in June, less than the 390,000 added in May, according to Dow Jones.
- “I think the market is caught between two narratives,” said one strategist. “I don’t know if it wants good news or bad news. At first, the hot economic news was bad because the Fed could go another 75 basis points and keep going, but now the market wants softer news. But is the landing going to be soft or hard? It’s like threading the needle right now.”
Investors are greeting the third quarter with greater trepidation about a recession, and that makes next Friday’s June jobs report a potentially bigger catalyst for markets than it might otherwise have been.
The jobs report and Wednesday’s release of minutes from the Federal Reserve’s last interest rate meeting are expected to highlight the four-day, post-holiday week.
June’s nonfarm payrolls are expected to have slowed from the 390,000 added in May, but still show solid job growth and a strong labor market. According to Dow Jones, economists expect 250,000 payrolls were added in June and the unemployment rate held steady at 3.6%.
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