Stock Market Anticipates Growth Amid Labor Market Slowdown

BlockBeats says that Goldman Sachs strategists have noticed that the stock market is starting to ignore poor labor data, which could lead to faster stock prices next year.

David Kostin's team suggests that anticipated interest rate cuts by the Federal Reserve this week will further support the stock market. Investors remain optimistic that the recent slowdown in the labor market is temporary. The cooling labor market is seen as a 'tailwind for corporate profits,' and it also opens the door for Federal Reserve rate cuts. Profit margins typically track the difference between prices and input costs, including labor. The S&P 500's earnings per share are expected to be affected by labor cost growth by 0.7% for every 100 basis point change.