Employment numbers: people losing their jobs and earning less, so equities go up - seems totally ridiculous and counter-intuitive to me, but there you go!
(yes, yes, I understand it's because of interest rates and bond yields, etc., but a weaker economy = less spending power = less goods sold = less manufacturing = lower EPS, so yeah, OK...)
There is a lot between āpeople losing their jobs and earnings less, so equities go upā
at this point in the cycle and well, most cycles its more like:
fewer ppl employed, yes losing jobs, wage pressure decreasing
higher unemployment is more correlated with LESS federal reserve tightening
LESS tightening, means interest rates remaining stable, or falling (mkt price, not fed funds rate, but that will follow)
Delta between US debt earnings rate and foreign sovereign debt rates, decreasing, or coming to parity
Currency risk to chase yield becomes less appealing, when sovereign rates are closer in parity
Lower demand for US debt, means less demand for US Dollar (one has to BUY dollars to BUY US Debt)
Lower dollar, means weaker dollar,
Weaker dollar, means things priced in USD$ become more expensive in dollar terms.. OIL, GOLD, and
STOCKS
This is short, to medium term in nature, it doesnāt continue forever, and at some point fundamentals have more influence.. Macro, micro, company specific
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