Employee Compensation Costs Surge, Raising Inflation Concerns and Dampening Market Outlook

Employee compensation costs increased 1.2% in the first quarter of 2024, exceeding expectations and adding to worries about persistent inflation. This surge, coupled with the Federal Reserve’s ongoing interest rate hikes, suggests that inflationary pressures may be more resilient than anticipated. Markets are now pricing in a reduced likelihood of a rate cut this year, with the odds of a September cut hovering around 50% and the probability of no cuts reaching 23%.

Green Shoots or Brown Shoots? Jim Cramer Weighs In

CNBC’s Jim Cramer is taking a closer look at the market’s recent performance and identifying signs of both strength and weakness. Cramer sees “brown shoots,” or companies that are underperforming despite the overall market’s positive momentum. These underachievers could potentially drag down the broader market if they continue to struggle.

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