MARKET RECAP

The NASDAQ and S&P 500 hit new highs. The NASDAQ was up 3.5% for the week and the S&P was 2% higher.

Unemployment increased to 4.1% and the US added 206,000 new jobs, a solid number. But the increase in the unemployment rate follows a recent trend of a slow grind higher. It was 3.4% one year ago. New jobs for April and May were revised lower by 111,000. Average hourly earnings increased by 3.9%, the lowest increase since 2021.

Investors are operating under the assumption that this all  means a comfortable slowing of the economy, and not what might be a tougher recession. They are also taking it to mean that the first rate cut might happen sooner rather than later, maybe in September.

Keir Starmer, leader of the UK Labour Party, will take over leadership of the country. But this is not the Labour Party of old, Starmer has led the party more towards the center, he is more of a pragmatist than a populist. His five point plan is to reduce regulation to increase housing, lower immigration, build-out green energy, and improve the health system. He is pro-business.