Markets.News
The U.S. government admitted to overstating job growth by 911,000 in the year through March 2025, sparking concerns about the long-term stability of the labor market. Major financial institutions, like Wells Fargo (NYSE: WFC), have seen volatile price action as a result. The latest jobs report revealed the U.S. economy added only 22,000 jobs in August, significantly below expectations. However, WFC stock saw a 2% gain on Tuesday amid speculation that the Federal Reserve may intervene due to economic downturn signals. Despite this, WFC stock remains down more than 1% over the past five sessions. The average monthly job creation figure for April 2024 through March 2025 is now at 71,000, down from the previous estimate of 147,000. This adjustment may lead investors to be cautious or bearish about WFC stock, but there is a statistical case for potential upside for contrarian investors.