Jun 30, 2021
Equity markets continue to creep higher but the move appears to be without conviction. The S&P 500 advanced less than 0.2% to set a new all-time high and led by the tech sector. The NASDAQ Composite advanced less than 0.25% and also set a new high.
The risk for the market this week is in the labor data. The non-farm payrolls report is expected to show 700,000 new jobs created in June and will likely miss the consensus figure by a wide margin. The question is whether job creation will be better or worse than consensus? A better-than-expected NFP figure will take some pressure off the Fed and pave the way for future rate hikes while a weaker-than-expected number would back the Fed further into a corner. If the market doesn't like what it sees rest assured the major indices will fall.