Markets are increasingly uneasy as fresh labor data shows the U.S. jobs market is softening, raising questions about whether the Fed will prioritize stabilizing employment over meeting its inflation target. With JOLTS revealing a notable drop in openings and unemployment rising to 4.3%, investors await today’s ADP release and tomorrow’s NFP report for confirmation. The combination of high rates, slowing job growth, and sticky inflation recalls the turbulence of 2022—leaving equities, currencies, and commodities in volatile territory.
- Labor market slowdown: Job openings fell by 176,000, unemployment at 4.3%.
- Fed dilemma: High rates + weak labor market may push Fed to prioritize jobs.
- Data ahead: ADP today and NFP tomorrow could dictate September policy expectations.
- Commodities: Gold retreats on risk flows, silver volatility stays elevated.