This time, it's a reaction to the US unemployment rate rising to 3.8% in August 2023 from 3.5% in July, the highest since February 2022 and above market expectations of 3.5%.
The market interprets these figures as the economy being in an expansive phase. If the reaction had been the other way around, it would have been interpreted as the economy shrinking. This means the market expects the unemployment figures to fall in the near future.
I really hope that the market has NOT interpreted the situation as a seventh grader in the middle of puberty, because then we have tough times ahead of us.
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