U.S. nonfarm payroll data shows "silver linings amid the bad news"; U.S. stock futures rise, but not enough to drive Federal Reserve this month's action
Svmuu News: U.S. stock index futures extended their gains after December’s job growth came in slightly below expectations. Nonfarm payrolls rose by 50,000 last month, falling short of the consensus market estimate of 73,000.The unemployment rate fell to 4.4% from a revised 4.5% in November. Art Hogan, chief market strategist at B. Riley Wealth, noted in a report: “The key takeaway from today’s report is that, in the first on-time jobs report in three months, the good news outweighs the bad.” The data also eased pressure on the Federal Reserve to cut rates again later this month, although the market still expects a rate cut later this year.Jerry Tempelman, vice president of fixed-income research at U.S. Common Capital Management, said that due to data disruptions caused by the prolonged government shutdown, today’s jobs report provides economists with the most insightful glimpse into the labor market in three months.We are watching the elevated unemployment rate—which hit a four-year high in November’s jobs report—and how it might influence the Federal Reserve meeting at the end of the month. The weak labor market backdrop supports a rate cut decision by the end of 2025, but it has not sparked concerns significant enough to warrant another rate cut this month.(Jin Shi)
Source:Odaily · Source Link
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