Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed in positive territory on Tuesday ahead of key inflation data later this week.
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In a resilient move, the market was able to remain green after the Bureau of Labor Statistics revised new jobs growth for the year ended March 2025 lower by a record-breaking 911,000 jobs, above the consensus estimate of 700,000 fewer jobs. The period covers 10 months under former President Biden and two months under President Trump.
Revisions during the past decade ranged between -0.4% and 0.3%, with today’s revision stepping out of the range at -0.6%. That’s the largest revision, in percentage terms, since 2009, adding to the list of concerning labor market signals.
“I think the economy is weakening,” JPMorgan CEO Jamie Dimon said on Tuesday in an interview with CNBC after reviewing the revision data. “Whether it’s on the way to recession or just weakening, I don’t know.” He added that the Fed will likely lower rates at the September 16-17 Federal Open Market Committee (FOMC) meeting, however, that move might not “be consequential to the economy.”
Investors generally perceive rate cuts as a positive factor for stocks, although that might not be the case this time amid elevated valuations and worrisome macroeconomic data, according to JPMorgan.
“We have concerns that the September 17 Fed meeting which delivers a 25bp cut could turn into a ’Sell the News’ event as investors pullback to consider macro data, Fed’s reaction function, potentially stretched positioning, a weaker corporate buyback bid, and waning participation from the Retail investor,” wrote JPMorgan Global Head of Market Intelligence Andrew Tyler in a note.
Treasury Secretary Scott Bessent added that he agrees with Trump’s view that the “Fed is choking off growth with high rates.” Lower interest rates make borrowing cheaper, which can stimulate the economy by encouraging spending and investment.
Meanwhile, Apple (AAPL) closed lower after revealing its new lineup of iPhones. The tech giant debuted the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and the first ever iPhone Air. The Air, which starts at $999, is Apple’s thinnest iPhone to date at 5.6 mm and is equipped with a 6.5-inch Super Retina XDR display, an A19 Pro chip, and a titanium frame.
The S&P 500 (SPX) closed with a 0.27% gain while the Nasdaq 100 (NDX) returned 0.33%.
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