The Fox News Rundown Business Rundown: The Jobs Report That "Shook The Market"
Jan 13, 2025
Kenny Polcari, Chief Market Strategist at Slate Stone Wealth, shares his insights on the surprising aftermath of a robust jobs report. He explains how the report has heightened inflation concerns and led Wall Street to reconsider the likelihood of further rate cuts. The conversation shifts to major companies re-evaluating their diversity, equity, and inclusion policies amidst economic shifts. Polcari also discusses investment strategies, emphasizing a pivot from tech stocks to more stable sectors like healthcare as rising inflation impacts market dynamics.
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Market Reaction to Jobs Report
- Friday's jobs report exceeded expectations, signaling a booming labor market with 256,000 jobs added and unemployment falling to 4.1%.
- However, markets reacted negatively, fearing that the strong data would discourage the Fed from cutting rates and potentially worsen inflation.
Critique of Fed Rate Cuts
- Kenny Polcari believes the Fed's 1% rate cut in the last three months of 2024 was excessive, given the robust labor market.
- He suggests the rate cuts were premature and now pose an inflation risk, possibly influencing the 2025 presidential election narrative.
Importance of CPI Data
- Investors should watch the upcoming Consumer Price Index (CPI) data closely as it becomes critical in light of the recent jobs report.
- Elevated CPI could signal further inflation concerns and influence the Fed's decisions on rate cuts or hikes.