Oppenheimer warns against overreacting to strong jobs data
Oppenheimer Asset Management's chief investment strategist, John Stoltzfus, cautioned against overreacting to strong jobs data, emphasizing that the Federal Reserve's policy decisions will be based on a range of data points rather than a single figure. Following the Fed's first rate cut on September 18, Stoltzfus noted that markets will be increasingly sensitive to economic data, which will influence future rate cuts. He reminded investors that changes in Fed policy are not linear and will occur when justified, not merely desired by market participants.
Oppenheimer Asset Management’s chief investment strategist John Stoltzfus argued on Monday that the investment community should not jump to a conclusion regarding the future of the FOMC’s policy based off the recent month’s strong jobs figure.
Stoltzfus indicated that the Federal Reserve’s policy decisions will not be determined by a single straight line move in a specific data point, but rather a culmination of data points.
“With the Fed having made its first rate cut on September 18, the markets are likely to be even more sensitive to economic data in the months and quarters ahead that can offer clues as to how many cuts are likely to follow and how deep and how soon they’ll occur,” Oppenheimer Asset Management stated in an investor note on Monday.
“Last week’s nonfarm payroll number should serve as a reminder to market participants that changes in Fed policy are not likely to come in a straight line but rather have the potential to come when the Fed feels rate cuts are justified rather than heartily desired by the denizens of Wall Street and Main Street,” the financial institution added.
For traders and investors looking to keep a pulse on the market, they may look to analyze market tracking ETFs. See some popular ETFs below:
Market Tracking ETFs: (NYSEARCA:DIA), (DDM), (UDOW), (DOG), (DXD), (SDOW), (NYSEARCA:SPY), (VOO), (IVV), (RSP), (SSO), (UPRO), (SH), (SDS), (SPXU), (NASDAQ:QQQ), (QQQM), (QLD), (TQQQ), (QID), and (SQQQ).