How have investors responded to ugly data and political spectacle? Financial markets absorbed the jobs shock—and the firing of Bureau of Labor Statistics chief Erika McEntarfer—with only a modest wobble. Stocks initially dipped but quickly rebounded: the S&P 500 climbed 0.7%, Nasdaq advanced 1.2%, and the Dow gained 0.2% after Apple’s news and earnings beats.
Why the calm amid chaos? Investors are betting on a Fed rate cut (now a 94% probability for September) and focusing on resilient corporate profits (particularly tech giants like Apple). Meanwhile, gold continues to hover near record highs at $3,363/oz, up over $950 year-on-year—a reminder some are still seeking safe havens.
Despite deep concern among economists and institutional trust threatened by McEntarfer's ouster, markets have largely shrugged, raising an uncomfortable question: Is Wall Street underestimating the risks when economic data becomes politicized?
