The U.S. economy is shedding jobs. Why that’s good news for stocks.

The article argues that weaker U.S. labor data could be bullish for equities, not bearish. With July payrolls showing 23,000 jobs lost and wage growth slowing, 22V Research’s Dennis DeBusschere says the Fed has more room to cut rates without reigniting inflation. He sees the economy as undergoing a “benign slowing” that can support continued growth, lower equity risk premiums, and stronger stock valuations. He also says AI-driven productivity gains are improving corporate margins, helping underpin earnings. On that basis, he thinks the S&P 500 could reach 8,500 over the next 12 months. The piece frames the market backdrop as supportive for stocks, with futures slightly higher, Treasury yields around 4.67%, the dollar firmer, and investors awaiting Wednesday’s CPI report.