The US stock market is reacting positively to the October jobs numbers, which were presented one hour before the start of trading on Wall Street.
- The broad S&P 500 index rose 0.67 percent
- The Nasdaq Technology Composite Index is up 0.69 percent
- The Dow Jones Industrial Average rose 0.66%
Friday’s US labor market report showed that 531,000 new jobs were created in the US in October.
The report is often referred to as the “most important number of the month,” because the numbers give an indication of how things are going in the world’s most important economy. The Federal Reserve (Fed) is following the numbers closely, and they are also being closely watched in financial markets around the world.
The increase in the number of jobs is a significant increase from last month, when 312,000 new jobs were created. Year-on-year wage growth was 4.9 percent in October, while the unemployment rate fell to 4.6 percent.
The report is being presented while there are growing concerns about the US labor market, especially the labor shortage.
So companies increased wages and provided other incentives to get people back to work.
At the same time, the US economy stagnated – US GDP rose only 2% in the summer months, well below expectations for a recovery in the US after the pandemic.
The US Federal Reserve is closely watching unemployment figures, because when they become strong enough, the bank will likely raise its key interest rate.
– It seems very likely that it is beginning to approach this threshold. The reduction in support stock purchases will start at NOK 15 billion per month in November and December, but will likely be revised upwards next year if the labor market moves in a positive direction.
Knut A. Magnussen at DNB Markets writes in an analysis as soon as “Non-Farm Payrolls” is published. (Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We want you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”