The Exchange Stocks Sink After Weak Jobs Report, the Trillion Dollar Man, and the Return of Rapid Fire 9/5/25
Sep 5, 2025
Steve Liesman, Senior Economics Reporter at CNBC, dives into the recent downturn in stocks after disappointing jobs numbers. He breaks down the implications for the Federal Reserve's interest rate decisions and the tech sector's response. Liesman also discusses Elon Musk’s ambitious pay plan tied to Tesla’s performance and the role of the Consumer Price Index in shaping market sentiment. Rapid Fire returns, shedding light on three key stocks in under three minutes, adding a dynamic twist to the financial insights.
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Market Rethinks The 'Perfect' Rate-Cut Narrative
- The jobs miss cooled the market's 'ideal' pricing for rate cuts without immediate economic pain.
- Markets now weigh potential Fed cuts against signs of consumer and cyclical weakness.
Jobs Data Tilts Odds Toward More Cuts
- The weak August payrolls pushed markets to price in three Fed cuts this year instead of two.
- The unemployment rise and soft wages complicate the Fed's inflation-versus-employment mandate.
Treasury Paper Challenges Fed Practices
- Treasury Secretary Scott Bessent publicly critiqued the Fed and urged reform while still backing central-bank independence.
- His essay could spur debate or legislative interest in changing Fed roles and QE policy.