Konoplytska Wednesday was an “all-around positive day” for market participants, said Seeking Alpha analyst Daniel Jones . The three major indexes ( SP500 ), ( COMP:IND ), ( DJI ) finished higher—up 0.8%, 1.3%, and 0.5%, respectively—after a few days of extreme volatility caused by the U.S.-Israel war escalations against Iran. “It's normal for the market to rebound after volatility like this,” Jone...
Konoplytska Wednesday was an “all-around positive day” for market participants, said Seeking Alpha analyst Daniel Jones . The three major indexes ( SP500 ), ( COMP:IND ), ( DJI ) finished higher—up 0.8%, 1.3%, and 0.5%, respectively—after a few days of extreme volatility caused by the U.S.-Israel war escalations against Iran. “It's normal for the market to rebound after volatility like this,” Jones said. “However, it was aided also by some recently strong economic data." The U.S. private sector employment grew by 63,000 jobs in February, higher than the expected reading of +43,000 and accelerating from the 11,000 added in January, according to the ADP jobs report . “At first glance, [these numbers] look good,” Jones said. “But when you look at the picture in its entirety, it's clear that economic circumstances are still being challenged.” He explained that, historically, this number is “still incredibly weak.” “More problematic, however, is the fact that job gains were revised lower for January,” he said. “That number has been pushed lower from 22,000 to 11,000.” In addition, pay increases are just 6.3% for those switching jobs recently. “While that might seem impressive, it's actually the lowest gap since ADP began tracking the metric. This signals to me that the jobs market is becoming increasingly frail,” Jones said. “When employees are confident and have negotiating power, job switching often yields higher wage gains. The fact that the gap here is now lower suggests that this negotiating power, or at least the power to vote with our feet, has deteriorated some,” he added. “This all signals to me that my claim, which I have made since August of last year, that a recession is all but imminent, is still a valid reading of where things are right now.” More on the markets AI Buildout Will Keep The Broad Bull Market Intact U.S. Economy: The Good, The Bad, And The Ugly Dow Jones And U.S. Index Outlook - Fearless Markets Are Exploding Higher U.S. stocks recover Middle E...