[周刊王CTWANT] The U.S. non-agricultural employment data in December exceeded expectations, the unemployment rate fell to 3.5%, and the average hourly wages increased by 0.3% month-on-month, making investors bet that inflation will continue to cool down. Therefore, U.S. stocks opened lower and closed higher on the 6th local time. The Dow rose 700 points, the S & P 500 index and the Nasdaq rose 2.3% and 2.6% respectively. However, U.S. Treasury yields fell across the board, and the inversion of interest rates, which is regarded as a recession indicator, continued to widen.
according toCNBCInvestors ushered in the closely watched non-agricultural employment report on the 6th. The report showed that the number of non-farm payrolls in the United States increased by 223,000 in December. The market expected that figure to rise by 200,000. The previous reading was revised down to an increase of 256,000 from an increase of 263,000. Wage inflation cooled down significantly in December. The average hourly wage increased by 0.3% month-on-month, which was lower than market expectations of 0.4%, and the previous value was revised to 0.4%. 4.8%. The unemployment rate unexpectedly fell to 3.5%, lower than expected and the previous value of 3.7%. Since March, the unemployment rate has fluctuated within a narrow range of 3.5% to 3.7%. The labor participation rate rose unexpectedly, with December data rising to 62.3%, higher than market expectations of 62.2%, and the previous value of 62.1%. The drop in the U.S. unemployment rate to 3.5% in December is somewhat surprising given that the labor force participation rate actually rose last month.
In this regard, Michael Arone, chief investment strategist at State Street Global Advisors, said: “All investors are concerned regarding is that non-agricultural employment data shows that inflation is moving towards the Fed’s target. In particular, average hourly earnings show that inflation will It’s exciting for them to continue to cool down.”
As a result, U.S. stocks opened lower and closed higher on the 6th local time. The Dow rose 723.04 points, or 2.20%, to 33653.12 points; the Nasdaq rose 279.45 points, or 2.71%, to 10584.69 points; the S&P 500 rose 93.40 points, an increase of It was 2.45%, at 3901.50 points.
In addition, another data released on the 6th Eastern Time showed that the Institute for Supply Management (ISM) service industry index fell from 56.5 in November to 49.6, the lowest since May 2020. The figure was lower than the forecasts of all economists surveyed. A reading below 50 indicates industry contraction. The services index fell nearly 7 points from the previous month, the biggest drop since the early days of the outbreak, likely as a harsh winter disrupted holiday travel and caused widespread power outages.
Prior to this, other labor market data released by the United States showed that the number of Americans filing for unemployment benefits fell to a three-month low last week. At the end of November, there were still 1.74 jobs for each unemployed person on average. The number of layoffs fell in December. 43%, which all indicate that the labor market remains resilient and might prompt the Fed to raise its target interest rate above the 5.1% peak forecast last month and keep it there for some time.
Analysts at Wells Fargo noted that while the labor market is slowing, but only gradually, “monthly non-farm payrolls are still above the pre-pandemic average and in line with the pace of hiring.”
Minutes of the Fed’s December policy meeting, released this week, showed that all officials agreed the Fed should slow its aggressive rate hikes, but policymakers remained focused on reining in price increases that might be hotter than expected. Fearful of any “misunderstanding” of its actions by the financial markets.
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