June 8, 2026

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The Markets​​​​​​​​​​​​

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There was some good news and some bad news last week.

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Let’s start with the good news: Employment gains exceeded expectations last month. 

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Employers in the United States added 172,000 new jobs in May, similar to April’s 179,000 new jobs. The unemployment rate remained steady at 4.3 percent, the average work-week length was about 34 hours, and wages rose.

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“The strong payroll growth, steady unemployment rate, and broad-based job gains are unambiguously good news, but Friday's data did show the labor market still has some weak spots…Those who are out of work are also still finding it difficult to get a job. The share of unemployed workers who have been out of work for 27 weeks or more rose to 27.5 [percent] in May, up from 25.3 [percent] in April and 20.4 [percent] a year ago,” reported Megan Leonhardt of Barron’s.

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Here’s the bad news: The Federal Reserve probably won’t lower the federal (fed) funds rate this year. It might raise the rate. (The fed funds rate is the interest rate at which banks lend money to each other. Other interest rates often move in the direction the fed funds rate moves, increasing or lowering borrowing costs.)

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The Fed’s two main jobs are to keep employment high and inflation low. Employment is healthy. The long-term average unemployment rate in the U.S. is about 5.7 percent, and the current rate is at 4.3 percent. Inflation, on the other hand, is rising faster than the Fed would like and, in recent months, has accelerated. As a result, the Fed is less concerned about supporting employment and more focused on reducing inflation. 

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One way for the Fed to fight inflation is to raise the federal funds rate. The move typically pushes other interest rates higher, increasing the cost of borrowing. Higher borrowing costs can slow consumer spending. In addition, higher borrowing costs can reduce company profits. When financial analysts anticipate lower corporate profits, they reassess stock valuations, and stock prices sometimes move lower. 

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While strong employment numbers are good news for people looking for work, they signal to the Fed that the economy doesn't need the support lower rates might provide. Instead, inflation become the Fed’s primary focus. Historically, higher rates are a tool the Fed has used to bring prices down.

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The possibility of higher rates hit financial markets hard last week. 

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“Wall Street’s historic weekly run came to a halt, with stocks hit by a tech selloff and higher bond yields after a solid jobs report added to bets the Federal Reserve’s next interest-rate move will be a hike. That repricing of the Fed outlook coincided with a swoon in the artificial-intelligence shares that had led a surge from this year’s lows,” reported Rita Nazareth of Bloomberg.

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By the end of the day on Friday, major U.S. stock indexes were lower, and yields on all but the shortest maturities of U.S. Treasuries were higher.​
 

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​​​​​​​​​​​​​​​​Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Private Advisor Group, a registered investment advisor. Private Advisor Group and Parks Wealth Management are separate entities from LPL Financial. ​

* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.

* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate, and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.

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* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.

* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.

* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.

* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.

* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

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* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

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* Asset allocation does not ensure a profit or protect against a loss.

* Consult your financial professional before making any investment decision.

* This is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.

* These views are those of Carson Coaching, and not the presenting Representative, the Representative’s Broker/Dealer, or Registered Investment Advisor, and should not be construed as investment advice.

* This newsletter was prepared by Carson Coaching. Carson Coaching is not affiliated with the named firm.

​Sources:

https://www.bls.gov/news.release/empsit.nr0.htm
https://www.barrons.com/livecoverage/jobs-report-data-may-today?mod=hp_LEDE_C_3 or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/06-08-26-Barrons-Some-Sign-of-Job-Market%20-%202.pdf
https://ycharts.com/indicators/us_unemployment_rate
https://www.bea.gov/data/personal-consumption-expenditures-price-index
https://www.investopedia.com/terms/f/federalfundsrate.asp
https://www.bloomberg.com/news/articles/2026-06-04/asian-stocks-poised-to-edge-lower-oil-steadies-markets-wrap or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/06-08-26-Bloomberg-Nasdaq-100-Sinks%20-%206.pdf
https://www.barrons.com/market-data?mod=BOL_TOPNAV or go to https://resources.carsongroup.com/hubfs/WMC-Source/2026/06-08-26-Barrons-DJIA-S&P-Nasdaq%20-%207.pdf
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value=202606
https://www.ssa.gov/oact/TRSUM/index.html
https://www.brookings.edu/articles/fixing-social-security-blueprint-for-a-bipartisan-solution
https://www.pgpf.org/article/lawmakers-are-running-out-of-time-to-fix-social-security
https://crr.bc.edu/can-equity-investments-help-social-securitys-long-run-financing
https://www.trlibrary.com/tr/fake-quotes?