Have you ever wondered what it's like when the markets resemble an emotional rollercoaster? This week in the financial markets was exactly that – full of unexpected twists and turns and emotions that certainly kept investors on their toes.
The beginning of the week brought a speech from Fed Chair Jerome Powell. His words always attract attention, as if they were a prophecy for the markets. In the context of the extreme fear that has gripped investors, his speech was like a compass in a storm. However, despite this, fear did not dissipate, and investors continued to adhere to cautious strategies.
Wednesday brought a bit more clarity to the economic situation in the USA, with the release of the ADP Non-Farm Employment Change data, which exceeded expectations. 62,000 new jobs is a signal that the labor market remains quite strong. Additionally, the retail sales data provided positive surprises, which may have somewhat eased investors' nerves.
Friday, as is often the case, was a pivotal day. The non-farm payroll data surprised positively, showing an increase of 178,000 jobs, significantly above expectations. The unemployment rate also fell to 4.3%, which may suggest that the U.S. economy is still performing quite well. Average hourly earnings were somewhat disappointing, but this did not manage to spoil the positive tone of the data.
The week ended with mixed feelings. On one hand, positive labor market data offers hope for stabilization, while on the other hand, sentiment remains in the extreme fear zone. Investors are still concerned about the future, but this week showed that not everything is so bleak. Moreover, cryptocurrency markets do not sleep on weekends, so emotions may return sooner than we expect.
