1. U.S. added 177,000 jobs in April, exceeding expectations. 2. Unemployment rate steady at 4.2%, projected to rise to 4.7% by year-end. 3. Average hourly earnings reached $36.06, a record high, showing consumer strength. 4. Layoffs surged 87% year-over-year, linked to tariffs and economic fears. 5. Economists predict recession risk remains uncertain amid mixed economic signals.
Mixed signals in job growth and rising layoffs suggest economic instability. Historically, similar downturns have negatively impacted stock market indices, including the S&P 500.
The labor market data and recession forecasts are critical indicators for S&P 500 performance. Increased layoffs and rising unemployment could lead to reduced spending and corporate earnings.
Immediate layoffs and rising unemployment could dampen consumer sentiment and spending, impacting S&P 500 companies soon. Markets react quickly to labor market changes.