Key Takeaways
- The U.S. labor market is showing significant signs of deterioration, with unemployment for graduates aged 20-24 jumping to 8.5%, the highest since the 2020 crisis. Employers have also announced 1,170,821 job cuts in 2025, a figure on track to exceed Great Financial Crisis levels and mark the second-highest total in 16 years.
- Contrasting the bleak labor market data, analyst Bessent forecasts a robust 3% GDP growth for the U.S. by the end of the year.
- A major shift is underway in the commodities market, as silver and copper have replaced gold as the preferred metal trades heading into 2026, with institutional and retail traders positioning for record rallies.
- Transat AT Inc. (TRZ) is facing operational disruptions, with flight cancellations expected after its pilots issued a three-day strike notice.
- Algeria's stock exchange is poised for growth, anticipating two to three initial public offerings (IPOs) next year, including IT company Ayrade, which aims to finance data centers.
The U.S. labor market is flashing significant warning signs, presenting a mixed economic picture despite a positive GDP outlook. Unemployment among graduates aged 20-24 has surged to 8.5%, marking its highest level since the 2020 crisis. This comes as U.S. employers have announced a staggering 1,170,821 job cuts in 2025, placing the year on track to surpass Great Financial Crisis levels and become the second-highest total in 16 years.
Despite these concerning labor market trends, a more optimistic view on overall economic growth has emerged. Analyst Bessent projects that the U.S. economy will conclude the year with a healthy 3% GDP growth. This divergence between labor market performance and GDP growth presents a complex challenge for policymakers and investors alike.
In the commodities sector, a notable shift is occurring as investors re-evaluate their positions for 2026. Silver and copper have now overtaken gold as the "hot metal trade," with both institutional and retail traders anticipating record rallies for these industrial metals. This indicates a potential shift in market sentiment towards industrial demand and away from traditional safe-haven assets.
Meanwhile, the airline industry faces fresh challenges as Transat AT Inc. (TRZ) prepares for flight cancellations on Monday and Tuesday. The disruption follows a three-day strike notice issued by the union representing the airline’s 700 pilots, highlighting ongoing labor tensions within the sector.
On the international front, Algeria's stock exchange is set for expansion, with expectations of two or three initial public offerings (IPOs) in the coming year. Among these is Ayrade, an IT company focused on financing data centers, signaling growth in the region's technology infrastructure. Geopolitical developments also remain a focus, with Israeli Prime Minister Benjamin Netanyahu stating that Israel expects to move to the next phase of the Gaza ceasefire plan soon. Additionally, the government spokesperson for Benin confirmed that President Patrice Talon is well and the situation in the country is under control.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.