This week’s May employment report is expected to indicate a rebound after the previous month’s disappointing increase in jobs. April saw only 266,000 new jobs added, with an unemployment rate of 6.1%. The recovery in employment, as a result of the pandemic, slowed down relative to an improving economy overall.
The May employment data is expected to show that 650,000 jobs were added last month, with a decrease in the unemployment rate to 5.9%. The stage is set for the data to potentially be even stronger than expected, given April's weak results.
I expect markets to continue to trade range-bound during the summer months, with inflation concerns and stimulus discussions being the two key factors driving short-term market volatility.
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