Nonfarm payrolls rose by 224,000 jobs in June, the most in five months, according to Labor Department data.
The 50 basis point rate cut is completely off the table now. This realization has caused overnight futures to be down going into market open on Friday, July 5, 2019.
Average hourly earnings rose by 0.2% in June after gaining 0.3% in May. That kept the annual increase in wages at 3.1% in June for a second straight month.
Moderating wage growth, non-existent capex spending, and mounting evidence that the economy is slowing could still encourage the Fed to cut interest rates by a quarter point when they meet at the end of July.
The major indexes have rallied to record levels on hopes of a rate cuts by the Federal Reserve and other major central banks in the wake of a slowdown in the global economy.