|Data for week commencing 3 September 2018|
Though the Trump versus China trade war still has Wall Street’s attention, the really big news was that the US economic comeback is still huge and strong, with 201,000 jobs created in the US over August, when only 191,000 were tipped by economists. However, an even bigger related news story was the jump in average hourly earnings by 2.9%, which was the biggest annualised rise since 2009!
This did raise questions about the expected two rate rises ahead this year, with some wondering whether the Fed could impose a third. This kind of talk is never great for stocks but the small fall in the Dow (79 points) says the positives around job creation was slightly offsetting. That said, I calculate the trade war talk helped the S&P 500 index drop about 1% for the week.