 |
|
|
|||||
U.S. stocks are wobbling Friday as Wall Street questions whether the U.S. job market has slowed by just enough to get the Federal Reserve to cut interest rates to help the economy, or by so much that a downturn may be on the way. After jumping to an early gain, the S&P 500 erased it and fell 0.4% below the all-time high it set the day before. The Dow Jones Industrial Average was down 203 points, or 0.4%, as of 11:45 a.m. Eastern time, after swinging between a gain of 148 points and a loss of 409. The Nasdaq composite slipped 0.1%. The action was more decisive in the bond market, where Treasury yields tumbled after a report from the U.S. Labor Department said employers across the country hired fewer workers in August than economists expected. The U.S. government also said that earlier estimates for June and July overstated hiring by 21,000 jobs. The disappointing numbers follow last months weaker-than-expected update, along with other lackluster reports in the intervening weeks, and traders now are betting on a 100% probability that the Fed will cut its main interest rate at its next meeting on Sept. 17, according to data from CME Group. Such cuts can give a kickstart to the economy and job market, but the Fed has held off on them this year because they can also give inflation more fuel. Until now, the Fed has been more worried about the potential of inflation worsening because of President Donald Trumps tariffs than about the job market. But Fridays job numbers were weak enough that they could even push the Fed to consider cutting rates by a deeper-than-usual amount in two weeks, said Brian Jacobsen, chief economist at Annex Wealth Management. This week has been a story of a slowing labor market, and todays data was the exclamation point, according to Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. While the data on the job market is disappointing, its still not so weak that its screaming a recession is here, and the U.S. economy is continuing to grow. A big question for investors is whether the job market can remain in a balance where its not so strong that it prevents cuts to interest rates but also not so weak that the economy falls off. Uncertainty about that helped lead to Friday’s swings in the stock market. Wall Street needs things to go as hoped because it already sent stock prices to records amid expectations for a Goldilocks scenario where interest rates ease, and the economy keeps chugging along. On Wall Street, Friday’s heaviest weight on the stock market was Nvidia, the chip company thats become the face of the artificial-intelligence boom. Its been facing criticism that its stock price charged too high, too fast and became too expensive amid Wall Streets rush into AI, and it fell 2.9%. Lululemon dropped 18.1% after the yoga and athletic gear makers revenue for the latest quarter fell short of analysts expectations. CEO Calvin McDonald pointed to disappointing results from its U.S. operation, as its international results saw positive momentum. CFO Meghan Frank said Lululemon is facing industrywide challenges, including higher tariff rates. They helped offset a leap of 9.3% for Broadcom after it reported better profit and revenue for the latest quarter than analysts expected. CEO Hock Tan said customers are continuing to invest strongly in AI chips, and the company expects revenue from them to accelerate. Tesla rose 3% after proposing a payout package that could reach $1 trillion for CEO Elon Musk if the electric vehicle company meets a series of extremely aggressive targets over the next 10 years. Smith & Wesson Brands jumped 6% after the gun maker delivered better results for the latest quarter than analysts expected. It reported a loss, but CEO Mark Smith said it saw good demand for its new products in what’s traditionally a slow season for sales of firearms. In stock markets abroad, indexes in Europe lost early gains to turn lower with Wall Street. That followed strength across much Asia. In Tokyo, the Nikkei 225 rallied 1% after data showed accelerating growth in earnings for Japanese workers. Chinese markets rebounded following three days of decline. Indexes jumped 1.4% in Hong Kong and 1.2% in Shanghai. In the bond market, the yield on the 10-year Treasury tumbled to 4.07% from 4.17% late Thursday and from 4.28% on Tuesday. Thats a notable move for the bond market. The two-year Treasury yield, which more closely tracks expectations for Fed action, fell even more. It dropped to 3.47% from 3.59% late Thursday. Stan Choe, AP business writer AP Writers Matt Ott and Teresa Cerojano contributed.
Category:
E-Commerce
If hunting for a job this year feels punishing, youre not aloneand new employment numbers back that up. New data from the Labor Department shows that in 2025, the American economy is starting to fray at the seams. For the first time since late 2020, the U.S. is losing jobs. A revision to Junes employment report revealed that the U.S. actually lost 13,000 jobs that month. The previous report showed a gain of 14,000 jobs, a figure that was revised down by 27,000 jobs lost in the new report. Julys data was revised up by 6,000 to 79,000 jobs gained that month, but the June dip into negative territory is an ominous red flag for the American economy that captures what many job seekers are seeing on the ground in 2025. The jobs report is the first since President Trump fired the director of the Bureau of Labor Statistics over an unfavorable report that showed slow hiring in July and adjusted numbers in prior months downward. In my opinion, todays Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad, Trump said on Truth Social, after firing the longtime government employee. In August, U.S. employers added just 22,000 jobs as unemployment inched up to 4.3%, the highest rate since 2021. When setting the pandemic-era unemployment spike aside as an outlier, last month saw the largest share of Americans unemployed since September 2017. According to the report, more than 25% of unemployed workers have been without a job for longer than a six month stretch. Trump lashes out against new jobs numbers Responding to the jobs report on Truth Social, President Trump blamed Federal Reserve Chair Jerome Powell for the dismal numbers. “Jerome ‘Too Late’ Powell should have lowered rates long ago,” Trump wrote. Trump has repeatedly bashed Powell over the Federal Reserves decision to hold off on lowering interest rates, an approach intended to keep a lid on inflation. Prices on goods and services soared after 2020, sending interest rates up and putting the Fed on high alert. While Trump gave the jobs report revision his customary conspiratorial spin, revisions to employment numbers are completely routine and arent published with politics in mind. An FAQ section in the report even addresses the issue of revisions, explaining that by including data that rolls in after each report, the Labor Department is able to paint a more accurate picture of the American labor marketnot a more politicized one. The establishment survey revises its initial monthly estimates twice, in the immediately succeeding 2 months, to incorporate additional sample receipts from respondents in the survey and recalculated seasonal adjustment factors, according to the report. A year defined by chaos Trump wants to pin the bad jobs news on Powell, but the chaos of the U.S. economy in 2025 at least partly has the president to blame. Trump took office and immediately cut the federal workforce to the bone, leaving tens of thousands of workers scrambling into other sectors for employment. Trumps endless barrage of tariffs loaded extra weight onto already high consumer prices while sowing chaos and confusion in global trade, with no clear benefit. To make matters even more complex, courts may unwind some of Trumps haphazardly laid plans, which could force the federal government to pay back taxes it has already collected. Against that backdrop, the American economy is a walking contradiction. There are more unemployed people than there are open jobs, but investors are happier than ever. Job seekers forced to wade through a process redefined by AI are drowning in a sea of thousands of auto-generated résumés flung at every open position. Meanwhile, companies boast about slashing their human workforces in favor of AI, pulling up the ladder for anyone seeking entry-level work. Concerns around inflation still loom, but given the latest jobs report, the Federal Reserve will almost certainly move to cut interest rates soon. That move wont be designed to please Trump, but rather to take some weight off of the economy before it sinks under the collective weight of so much chaos.
Category:
E-Commerce
Tucked away among the 940 pages of President Donald Trumps massive One Big Beautiful Bill Act (OBBBA) are an array of new tax write-offs, exemptions that Trump promised to enact while running for a second term. Those include a provision of the No Tax on Tips Act. This provision of the OBBBA, which narrowly passed the Senate, and Trump signed into law in July, gives taxpayers the ability to deduct income from tips and overtime pay. It expires at the end of 2028, right before Trump leaves office. For workers, it creates new tax deductions of up to $25,000 on income made from cash tips, and tips workers report to employers withholding payroll taxes. Eligible employees (see list below) that make up to $160,000 in 2025 qualify. (Going forward, that limit will be adjusted each year for inflation.) For employers, it also expands the business tax credit for the portion of payroll taxes that an employer pays on certain tips, to include payroll taxes paid on tips received in connection with certain beauty services. Which jobs qualify for the no tax on tips and overtime deduction? Up until now, the Trump administration hadn’t clarified which jobs were eligible. Over Labor Day, Treasury Secretary Scott Bessent told Axios there are 68 occupations, calling the selection expansive but fair. The official list will be published in the Federal Register, but here’s the preliminary Treasury list, which is likely to be substantially the same after a period of public comments: Beverage & Food Service Bartender Wait staff Food servers (non-restaurant) Dining room and cafeteria attendants and bartender helpers Chefs and cooks Food preparation workers Fast food and counter workers Dishwashers Host staff, restaurant, lounge, and coffee shop Bakers Entertainment & Events Gambling dealers Gambling change persons and booth cashiers Gambling cage workers Gambling and sports book writers and runners Dancers Musicians and singers Disc jockeys (except radio) Entertainers and performers Digital content creators Ushers, lobby attendants and ticket takers Locker Room, coatroom and dressing room attendants Hospitality & Guest Services Baggage porters and bellhops Concierges Hotel, motel and resort desk clerks Maids and housekeeping cleaners Home Services Home maintenance and repair workers Home landscaping and groundskeeping workers Home electricians Home plumbers Home heating and air conditioning mechanics and installers Home appliance installers and repairers Home cleaning service workers Locksmiths Roadside assistance workers Personal Services Personal care and service workers Private event planners Private event and portrait photographers Private event videographers Event officiants Pet caretakers Tutors Nannies and babysitters Personal Appearance & Wellness Skincare specialists Massage therapists Barbers, hairdressers, hairstylists and cosmetologists Shampooers Manicurists and pedicurists Eyebrow threading and waxing technicians Makeup artists Exercise trainers and group fitness instructors Tattoo artists and piercers Tailors Shoe and leather workers and repairers Recreation & Instruction Golf caddies Self-enrichment teachers Recreational and tour pilots Tour guides and escorts Travel guides Sports and recreation instructors Transportation & Delivery Parking and valet attendants Taxi and rideshare drivers and chauffeurs Shuttle drivers Goods delivery people Personal vehicle and equipment cleaners Private and charter bus drivers Water taxi operators and charter boat workers Rickshaw, pedicab and carriage drivers Home movers
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||