Money

Despite rising layoffs, job openings remain resilient

Published

2 years ago

January 31, 2024

Job openings in the United States increased to 9 million, indicating the ongoing resilience of the job market despite the challenges posed by rising interest rates.

This figure represented a slight uptick from November’s 8.9 million job openings, which itself was revised upwards in the latest government report.

Although job openings have gradually decreased since reaching a record high of 12 million in March 2022, they continue to remain historically high.

Prior to 2021, monthly job openings had never exceeded 8 million.

Layoffs increased

However, there were cautionary signs in the report as layoffs increased in December, suggesting some turbulence in the labor market.

Additionally, the number of Americans quitting their jobs, often seen as a sign of confidence in finding better opportunities, dipped to its lowest level since January 2021.

Despite the impact of higher interest rates, which have resulted in increased borrowing costs for consumers and businesses, the U.S. economy and job market have demonstrated surprising resilience.

Red-hot job market

The Federal Reserve raised its benchmark interest rate 11 times between March 2022 and July 2023, reaching a 23-year high of around 5.4%.

This move was aimed at cooling the red-hot job market of 2021 and 2022 and reducing pressure on businesses to raise wages, which could lead to higher prices for consumers.

Although higher rates have contributed to a slowdown in hiring, the job growth rate remains relatively healthy. In 2023, U.S. employers added 2.7 million jobs, down from 4.8 million in 2022 and a record 7.3 million in 2021.

Despite the cooling job market, the unemployment rate has remained below 4% for 23 consecutive months, the longest streak since the 1960s.

Unemployment benefits

Additionally, the number of people applying for unemployment benefits, which serves as a proxy for layoffs, has stayed remarkably low.

While inflation has slowed from its peak in mid-2022, it remains above the central bank’s 2% target.

The Federal Reserve has indicated its intention to reverse course and cut interest rates three times this year, although it is expected to leave rates unchanged at its latest policy meeting.

The financial markets anticipate the first rate cut as early as March, but the continued strength in the job market may make the Fed’s policymakers cautious about acting before mid-year.

The latest data underscore the robust demand for workers, suggesting a careful approach to ensure that inflation reaches the Fed’s 2% target.

Money

U.S. jobs report, Fed decisions, and Japan’s economic risks explained

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

Published

11 hours ago

February 12, 2026

Harvey Vargas

January US jobs report sparks uncertainty; analysts debate impact on Federal Reserve policy and market confidence.

The January US jobs report shows a mixed picture for the economy, with payroll revisions and steady unemployment leaving analysts questioning the impact on Federal Reserve policy. We break down what the numbers mean for interest rates and market confidence.

US stock markets could face turbulence as investors digest the latest jobs data. David Scutt from StoneX explains how these figures may influence equities and what the outlook is for global markets.

Meanwhile, developments in Japan and a strengthening yen could spark new macroeconomic risks. From carry trades to unexpected shocks, we explore how these factors ripple across the global economy.

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#USJobsReport #FederalReserve #StockMarket #MacroRisks #JapanEconomy #GlobalMarkets #CurrencyTrading #EconomicUpdate

Money

Alphabet launches $20B bond to fund AI expansion

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Published

1 day ago

February 11, 2026

Harvey Vargas

Alphabet’s $20B bond offering highlights investor confidence in AI growth, enabling funding without shareholder dilution.

Alphabet has launched a record $20 billion bond offering to finance its massive AI infrastructure build-out, signalling strong investor confidence in the company’s growth strategy. The oversubscribed sale shows that investors are betting on Alphabet’s AI potential and long-term returns.

By using debt instead of equity, Alphabet can raise funds without diluting shareholders. The money will support AI research, advanced computing, and other strategic projects, cementing the company’s leadership in the sector.

Brad Gastwirth from Circular Technologies explains how corporate debt is reshaping tech financing and how investors perceive AI-linked bonds. This record issuance could set a trend for other tech companies looking to fund innovation.

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Money

AI tax tool sparks market turmoil for financial firms

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Published

1 day ago

February 11, 2026

Harvey Vargas

Major financial firms’ stocks fell sharply after an AI tax tool launch, raising investor fears of disruption in advisory services.

Shares of major financial services firms tumbled after the launch of a new AI-powered tax planning tool. LPL Financial dropped nearly 11%, while Charles Schwab and Raymond James Financial fell more than 9%, signalling investor concern over AI disrupting traditional advisory services.

Morgan Stanley also saw a 4% decline as fears grow that AI could replace some of the most profitable offerings of established firms. Earlier this year, the introduction of other AI models already caused turbulence in software stocks, suggesting this could be a broader trend affecting multiple sectors.

The iShares U.S. Broker-Dealers and Securities ETF was down 4% on Tuesday, reflecting the market-wide uncertainty surrounding AI adoption in finance. Investors are closely watching whether AI will complement or cannibalise the industry’s core services.

#AIImpact #WallStreet #FinancialMarkets #InvestingNews #MorganStanley #CharlesSchwab #RaymondJames #FinTech