U.S. equities posted their largest losses since January due to pressure surrounding global economic growth, trade tensions and a weak employment report. On Friday, February’s jobs report disappointed with only 20,000 new jobs added despite an expectation of 180,000. The unemployment rate ticked down to 3.8% and average hourly earnings increased by 3.4% year-over-year.
This week, markets will get their most comprehensive view of the Chinese economy. The current state of the country’s growth will be closely scrutinized as a flurry of economic data is scheduled to be released. I remain positive on equity markets, but the next few weeks have several headwinds to navigate given 2019’s significant rally thus far.
Keep a close watch on interest rates as the 10-year Treasury continues to hover near 2.6%. If rates move below 2.5%, I will adjust my odds higher of a U.S. slowdown.
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