alt Hacker NewsYou have it backwards. Layoffs these days increase stock value because everyone is hedging that bad job numbers will force the feds to lower interest rates. Something Powell has hesitated to do in order to keep inflation in check.
It's a very screwed up incentive to be rewarded for breaking the system, but that's 2025 in a nutshell.
> Layoffs these days increase stock value because everyone is hedging that bad job numbers will force the feds to lower interest rates.
Layoffs generally cause stock prices to go up because of anticipated cost reduction/efficiency: https://doi.org/10.1093/ser/mwab046
If you have some source to make the case that layoff-stock price change is correlated for a different reason these days, it would be interesting to read it. But I doubt anything has changed