Industrial and Transportation Companies Face Decline After Strong Jobs Data

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The industrial and transportation sectors experienced a downturn as fears of additional rate hikes emerged following robust jobs data. In June, the private sector in the United States added a staggering 497,000 jobs, as reported by payroll-services firm ADP. This figure surpassed May’s revised increase of 267,000, marking the largest surge of the year so far.

According to Quincy Krosby, Chief Global Strategist at brokerage LPL Financial, the recent acceleration in economic growth has compelled the market to acknowledge the potential need for continued rate hikes by the Federal Reserve. This realization has created uncertainty and contributed to the decline in shares among various companies in these sectors.

Ford Motor Co. experienced a drop in shares after announcing that its second-quarter U.S. vehicle sales had only risen by 11%. This growth rate lagged behind some of its competitors, causing concern among investors.

Despite recent turbulence and declines in asset prices within the industrial property market due to the pandemic, EQT’s real-estate arm, a multistrategy investment manager, is preparing to launch a new fund specifically aimed at investing in industrial properties. This move suggests a potential resurgence in this market segment.

During a visit to South Carolina, President Joe Biden showcased his economic accomplishments and emphasized a new manufacturing partnership between Enphase Energy and Flex. This partnership is expected to spark further growth and development in the manufacturing industry.

*[ADP]: Automatic Data Processing *[U.S.]: United States *[EQT]: Equitable Resources Incorporated

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