Wednesday's Scoop: Juiced 🌤️

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Here’s what you need to know today to inform your work, spending, and investments:

1. Hiring slowed last month, and wages aren’t rising as quickly.

2. Parts of the economy signaled a rebound in May.

3. This year’s hurricane season could be more destructive than usual.

Unemployment Rate: 3.9%
^{Still near the lowest rate in 50+ years}

Hiring slowed significantly in May. Private employers added only 152,000 jobs, marking the lowest monthly increase since January, according to payroll provider ADP. Manufacturing has seen the worst, with 20,000 lost jobs, while sectors like trade, transportation, and utilities saw gains. Wages have stagnated, with annual wage growth holding steady at 5%. This deceleration in hiring and pay raises signals potential challenges for workers as we move into the second half of the year.

Parts of the economy showed signs of a rebound in May. The Institute of Supply Management reported the US services sector rebounded strongly in May, with business activity seeing its most significant jump in three years, highlighting the sector's resilience compared to manufacturing. While services, which constitute the majority of the US economy, showed robust growth, manufacturing continued to contract, underscoring its more minor role, only making up about 10% of the economy. This divergence suggests that despite a slowdown in hiring, the overall economy remains solid.

Global Energy Emissions: 37.4B metric tons of CO₂
^{An all-time high, up 1.1% from 2022. (IEA)}

This hurricane season is expected to be severe, with forecasts predicting up to 25 storms, driven by near-record warm waters and favorable conditions. According to Bloomberg Green, the economic impact could be substantial, particularly for insurance, real estate, and energy industries. Coastal regions face significant risks, potentially resulting in billions of dollars in damages and disrupting vital offshore oil and gas production. A category five hurricane, the most severe kind, hitting the Miami coast is estimated to cost the economy $1.35 trillion. As storms grow stronger and more frequent, businesses and governments must brace for increased recovery costs and economic instability.

The Market: ⬆️ +1.2%
S&P 500: 5,354.03
1Mo: +3% | 1Yr: +25% | 5Yr: +86%

The market surged to a new record on Wednesday as investors celebrated data that pointed to a slowing economy. They hope this will encourage policymakers to stop restricting business activity with high borrowing costs.