After Friday’s disappointing jobs report, are we now in an environment where disappointing economic data is stock market positive?
Last week we talked about the stock market possibly entering crazyville and the market reaction last week to economic data tells us that we could be there. Earlier in the week we got some outstanding manufacturing and non-manufacturing data. This data showed the pace of growth at all-time high levels.
How did the market react? By being flat to down. On Friday, we got a jobs report that came in below expectations and the S&P 500 finished up almost 1% on the day.
For the week ahead, lets see if this is the beginning of a new market environment. Specifically, we’re talking about disappointing economic data being stock market positive. Why might this be? Well, it all goes back to the Fed, the tapering of their bond-buying program and when they will ultimately raise rates. If data is showing an economy that could overheat then that could push forward the Fed tapering and rate hikes. But if economic data is disappointing then that makes that scenario unlikely.
This has been your Weekly Market Minute, and we’ll see you on Monday – prefer to listen or watch? Check out our video & audio formats below:
Prefer Audio Over Video?
Stay informed on what’s going on in the market without getting caught up in the flashy headlines.
