06/08/2026
📊 Monday Market Update 🏡
The labor market came in much stronger than expected in May, with employers adding **172,000 jobs**, nearly double economists' forecasts. Even better, both March and April job numbers were revised upward, making this the strongest three-month stretch of job growth in more than two years. 👥
The unemployment rate remained steady at **4.3%**, while hiring gains were broad-based across the economy. Leisure and hospitality led the way, with additional growth in healthcare, construction, and manufacturing. 🏗️
🏦 Federal Reserve officials are taking notice. Cleveland Fed President Beth Hammack described the labor market as being in balance and suggested that if current trends continue, policymakers may eventually need to take action.
💵 Treasury yields moved sharply higher following the jobs report. The **10-year Treasury yield closed the week at 4.53%**, rising 10 basis points for the week as investors adjusted expectations for future Fed policy.
📅 This week's focus turns to inflation. Wednesday's Consumer Price Index (CPI) report is expected to show inflation running at **4.2% year over year**, the highest level in more than three years. Thursday's Producer Price Index (PPI) report is also expected to show elevated inflation pressures.
🔒 Federal Reserve officials are now in their pre-meeting blackout period ahead of next week's FOMC meeting, meaning no additional commentary from policymakers until after the meeting concludes.
Treasury yields are little changed this morning, and mortgage-backed securities are unchanged from Friday's close in early trading.
