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Dow Jones Industrial Average rallies into a payrolls print it cannot win
Developing
In Short: The Dow Jones Industrial Average (DJIA) rallied strongly on Thursday, closing just under 53,700, up about 620 points and nearly 1.2%, its best session since August 4. This surge came after a Federal Reserve (Fed) governor indicated he would support holding rates at the September
The Dow Jones Industrial Average (DJIA) rallied strongly on Thursday, closing just under 53,700, up about 620 points and nearly 1.2%, its best session since August 4. This surge came after a Federal Reserve (Fed) governor indicated he would support holding rates at the September 15-16 meeting if upcoming inflation data is favorable.
Vice President JD Vance, in a press briefing, urged the Fed to lower rates to help Americans afford homes, citing President Trump's desire for affordability. However, the average 30-year fixed mortgage rate had risen to 6.71%, its highest since July 2025, putting pressure on the housing market.
The Fed Chair, known for prioritizing price stability, is unlikely to base a rate hold decision on weak hiring data alone. A soft payroll print, coupled with a second consecutive poor month, shifts the focus from rate expectations to earnings performance, potentially affecting stock valuations.
This shift in focus from rate expectations to earnings could have significant implications for the market, as investors now look to corporate performance rather than central bank actions for guidance.
What's confirmed
What's still developing
- The Dow Jones Industrial Average (DJIA) closed just under 53,700 on Thursday, up roughly 620 points and close to 1.2%, its strongest session since August 4, after a Federal Reserve (Fed) governor said he would be…
- Vice President JD Vance told a press briefing that the Fed should be lowering rates because President Trump wants Americans to be able to afford a home, and asked for some help from the central bank, hours after the…
- A Fed Chair who has said prices come first is not going to base a hold on weak hiring, so a soft print buys equities nothing on the rate side, and a second poor month in a row turns the labour market from a rates…
Sources
- FXStreetlink