Stock market: We’re entering a period of ‘negative operating leverage,’ strategist says

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Unusually large U.S. jobs number stokes case for ‘unusually large’ rate hike

The U.S. Federal Reserve faces renewed pressure to deliver another 75 basis point interest rate hike at its upcoming meeting in September as fresh data showed job gains unexpectedly accelerating and overall employment at a record high despite soaring inflation and rising borrowing costs. The economy added 528,000 jobs last month, the Labor Department said in its closely watched employment report on Friday, a far larger-than-expected number than expected. Data for June was revised higher to show 398,000 jobs created instead of the previously reported 372,000, while the unemployment rate fell to a pre-pandemic low of 3.5%.