1. Employee compensation rose 0.8% in Q3, smallest increase pre-pandemic. 2. Inflation increased slightly under 3%, indicating contained inflation pressures. 3. Slower wage growth provides Fed leeway to cut interest rates further. 4. Labor costs have not been a significant inflation source recently. 5. DJIA showed slight decline but was set to rise in trading.
FAQ
Why Bullish?
Expectations of interest rate cuts due to lower wage growth may support DJIA. Historically, similar scenarios resulted in market rallies.
How important is it?
The article discusses economic indicators influencing Fed decisions, significantly impacting DJIA performance.
Why Short Term?
Immediate market reactions to Fed rate decisions usually affect stock indices like DJIA rapidly.