Adding to the concern that the economy is slowing, the U.S. jobs report showed an addition of 75,000 new jobs in May, well below the three-month average of 151,000. The unemployment rate held steady at its near 50-year low of 3.6%, and hourly wage growth leveled off at just over 3% for the year, after years of steady increases.
The report may give the Federal Reserve more reason to think that the U.S. economy is slowing, resulting in an interest-rate policy shift as it prepares for a policy meeting on June 18 and 19. Last month, Fed officials downplayed speculation of a rate cut this summer, but a darker economic outlook could prompt a change of course.
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Gabrielle Dibenedetto does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.