The US labour market is losing momentum

Wall Street went up yesterday

Thursday has been a positive day for the US stock market.

All three US major indexes closed in profit.

The S&P 500 finished at +0.36%, the Nasdaq ended the trading session at +0.76% and the Dow Jones closed at +0.01%.

The reason behind the movement is that investors are changing their focus from the potential banking crisis to economic health, interpreting the slowing down of the labour market as a sign of cooling inflation.

The investors’ sentiment is Greed, as indicated in the graph below:

Sentiment indicator – Fear & Greed Index

The market sentiment, updated yesterday, was 57, in “Greed” mode.

The US labour market is losing momentum

After the pandemic, the US labour market has risen rapidly and many employers have kept hiring despite historically high inflation and a fast interest rates increase monetary policy implemented by the Federal Reserve.

The unemployment rate in the US is low, despite the recent layoffs of some big companies such as Amazon, Meta, Salesforce, Zoom Video Communications and Goldman Sachs Group Inc.

Based on the recent job market data, however, it looks like the labour market is starting to cool down.

The Labor Department yesterday, has reported 228,000 new weekly applications for unemployment benefits, 28,000 more than the economists forecasts.

The failure of SVB and another regional bank have had no impact yet on the data reported yesterday, so it will likely add more pressure on the job market next month.

What to watch

The stock market today is closed for Good Friday, but important data will be released.

The closely watched non-farm payrolls report will be published by the Labour Department today at 13:30 GMT.

Some investors are welcoming the high unemployment rate because that means that inflation is reducing and the Federal Reserve is doing a good job.

Until now, the strong labour market and rising wages have been major contributors to inflation.

Portfolio update

I remain neutral and cautious about the stock market.

I hold long and short stock positions and aim to profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here:

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page:

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.


Federica Montella

eToro Popular Investor


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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.