Investing.com – The aftermath of last week’s U.S. jobs report saw equities rally even as rates reset higher and cuts got pushed further out, noted JPMorgan, resulting in equity markets becoming even more disconnected.
The Labor Department said on Friday that the U.S. unemployment rate ticked up to 4.0% for the first time since January 2022, while nonfarm payrolls increased by a hefty 272,000 jobs last month, suggesting the Federal Reserve may continue holding off starting to cut interest rates.
“We see diminished prospects for easing this year, and now expect the first Fed cut only in November,” said analysts at JPMorgan, in a note dated June 10.
Yet, equities continue to see demand, as investors appear to be ignoring a plethora of risks, “including politics (which roiled a few emerging markets last week, sending a warning sign for this year’s remaining elections),…
