Thursday's Markets Update (May 4, 2023)

05 May 2023 by rate3

On Thursday, macroeconomic data came out mixed. DOL reported that weekly jobless claims rose to 242K, while Challenger Inc. data showed that in April, employers announced fewer job cuts than in March. In response, the markets barely moved, with NASDAQ (o: 11997, c: 11966) and BTC (o: 29054, c: 28895) remaining at their Wednesday's levels.

The latest job cuts report by "Challenger, Gray and Christmas" – the firm specializing in outplacement and executive coaching – unveiled than n April, there were 66,995 cuts, a 176% increase from April 2022 but a 25% decline from March's 89,703 cuts. This year, plans to cut over 337K jobs have been announced, a 322% rise compared to the first four months of 2022 (approximately 80K cuts). Excluding 2020, it is the highest January-April total since 2009.

In April, the retail sector dominated with a 270% surge in cuts compared to March. The technology industry followed, announcing around 12K cuts, but it leads in total cuts this year with 114K, accounting for 34% of all 2023 announcements. Year-to-date, the total is up by 24,724%, a dramatic increase from the 459 cuts reported through April 2022. Financial firms secured the third position with a 285% rise from April 2022.

On the hiring front, there has been a notable decline compared to 2022. In April, companies announced intentions to add approximately 23K positions, bringing the year's total to around 94K. This marks an 81% decrease from the 487K hiring plans announced during the corresponding period last year.