MarketWatch
The U.S. economy is shedding jobs. Why that’s good news for stocks.
Monday, August 10, 2026
The U.S. labor market has shown weakness in recent months. According to 22V, a weaker labor market combined with stable wage inflation could enable the Federal Reserve to reduce interest rates. Stock market investors have historically responded positively to interest rate cuts, as lower rates reduce borrowing costs for corporations and can increase the appeal of equities relative to bonds.
