The US economy added 336,000 jobs in September — a surprising jump that further solidifies the labor market’s resiliency in the face of the Federal Reserve’s aggressive tightening regime.
In premarket trading on Friday, the Dow and S&P 500 were each down less than 1% in response to the jobs report, while the Nasdaq was up about 0.5%.All three major indexes plunged more than 1% Tuesday following the JOLTS report. And all the while, the benchmark Treasury yields hit 16-year highs and thePrivate-sector jobs, however, added a mere 89,000 jobs in September, according to an ADP on Wednesday — well below the 153,000 advance in private-sector hiring economists anticipated.
Thus, a resurgence in job growth and pay raises could make it more difficult for the Fed reach its 2% inflation target without further hiking interest rates. However, the 3.7% figure still represents a stark slowdown from last summer when inflation hit a four-decade peak at 9.1%. Still, it remains well above the Fed’s 2% goal and marks an acceleration from the previous two months. In June, inflation bottomed out at 3%, and rose to 3.2% in July.
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