The S&P 500 closed at a record high as investors reacted to a sharp downward revision in U.S. payroll data—showing 911,000 fewer jobs created than previously estimated—fueling expectations that the Federal Reserve may soon cut interest rates to support slowing economic growth, with market sentiment now hinging on the Fed’s next move and its outlook on inflation versus employment.
00:00Before we go into our next break, we'll be leaving you with this U.S. market updates on the S&P 500 notch, a record high close on Tuesday.
00:09While UnitedHealth rally and a downward payrolls revision supported expectations, the Federal Reserve will soon cut interest rates to show up economic growth.
00:18The U.S. economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said,
00:26suggesting that Joe Proff was already stalling before President Donald Trump launched his global tariffs.
00:35Today we see the market essentially idle. I think we're going to see more neutral and sideways behavior up until the FOMC meeting next week.
00:45Investors have a lot to digest right now with the economic uncertainty, the massive revision downward for jobs,
00:52with 911,000 less jobs created than we originally thought over the last year.
00:57Then we have to start questioning, what is the Fed going to tell us at that meeting?
01:01If they cut by 25 basis points, or do they cut by 50 basis points?
01:06If they cut by 50 basis points, are they going to admit that they were wrong and they are late to the party?
01:10And if they do only cut by 25 basis points, what are they going to signal about the economy going forward, particularly as it relates to the jobs market?
01:19Are they more concerned with the jobs market than they are with inflation?
01:22I think investors are, for the most part, going to be on the sidelines until we hear from the Fed next week in terms of their outlook for the economy and their outlook for interest rates.
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