Week Ending July 2nd, 2021

The stocks indices moved to new highs last week. June’s payroll report released last week showed that US economy added 850,000 jobs while unemployment rate edged higher to 5.9% from 5.8%. Average hourly earnings rose by 0.3% on monthly basis, which is a bit surprising for me.

The unemployment rate rose slightly as modest number of Americans entered Jobs market who were not looking for jobs previously. I think this new Jobs report is unlikely to sway Federal Reserve one way or another.

The market interpreted the jobs report as just right because it is not strong enough to compel Fed to accelerate efforts towards taper timeline. More people will enter jobs market as unemployment benefits go away by September .