© Reuters
Investing.com – Stocks fell on Thursday, after stronger-than-expected jobs data revived concerns about continued interest rate hikes.
The Fed has already indicated that it expects more interest rate hikes in the future as it works to combat inflation. Futures traders see prices rise another quarter of a percentage point when the Fed meets later in July.
Ahead, Friday’s June jobs report and next week’s report on consumer prices will give the Fed two key bits of data as it makes its decision.
The stronger-than-expected private payroll numbers on Thursday indicate that the labor market remains strong. This puts pressure on the Fed to continue containing inflation, which has not yet returned to its 2% target. But investors fear the Fed could tip the scales too far and tip the economy into recession.
Corporate earnings season kicks off in about a week, giving investors more insights from CEOs on the state of the business, consumer spending, and the outlook for the rest of the year.
Here are three things that could affect the markets tomorrow:
1. Jobs report
The June report is expected at 8:30 a.m. ET (12:30 GMT). Analysts expect the economy added 225,000 jobs in June, down from the previous month.
2. Work participation rate
At the same time, the government’s jobs report will show employment for the month of June. Analysts expect the reading to remain unchanged at 62.6%.
3. Average wages
The average is expected to rise by 0.3% for the month and 4.2% for the year. The annual figure is a slight cooling from the previous reading.