NEW YORK (AP) – If investors hoped Thursday’s U.S. jobs report would give them clarity, they were probably disappointed.
The report, one of the most-watched pieces of news in financial markets, painted a mixed picture for U.S. employment. And it left a key question hanging over stocks and bonds: When and how quickly will the Federal Reserve raise interest rates?
U.S. employers added a solid 223,000 jobs in June, and the unemployment rate fell to a seven-year low of 5.3 percent. But wage growth stalled, suggesting that spending by Americans is unlikely to rise.
Stocks ended the day slightly lower and investors drove bond prices up.
Investors and analysts have been speculating for months that the Fed will increase its benchmark interest rate later this year as jobs and the economy keep improving. The Fed has kept that rate at an historic low since 2008 to help the economy heal from the financial crisis and a deep recession.