The U.S. has entered summer, and while people can expect to have an easier time due to the popularity of the new crown (Chinese communist virus) vaccination, factors such as record high financing balances for U.S. stocks and unpredictable economic data could throw the stock market and other financial assets into turmoil for months, as many market participants are busy on vacation, trading volumes could drop, and there could be other factors that could upend the market.
Analysts point out that a number of unexpected conditions may occur in the stock market this summer, including whether the new crown epidemic will rise again after the economy is unsealed. During the summer, there are a number of factors that could lead to stock market turmoil, including economic data is very likely to give the city a scare. This week, the U.S. will release manufacturing sentiment indicators, construction spending, auto sales, and the Federal Reserve Board’s (Fed) regional economic brown book.
More importantly, the May employment report will be released on June 4. April’s employment figures were much weaker than expected, and analysts expect May’s numbers to be disappointing, partly because of the difficulty in matching labor skills with employer demand.
The labor market cannot adjust quickly, as retraining workers can take years rather than weeks.
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