{"id":2058066,"date":"2023-10-06T14:35:01","date_gmt":"2023-10-06T18:35:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/good-news-is-bad-news-as-markets-react-to-strong-jobs-report\/"},"modified":"2023-10-06T14:40:05","modified_gmt":"2023-10-06T18:40:05","slug":"good-news-is-bad-news-as-markets-react-to-strong-jobs-report","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/good-news-is-bad-news-as-markets-react-to-strong-jobs-report\/","title":{"rendered":"Markets react negatively to strong jobs report"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgood-news-is-bad-news-as-markets-react-to-strong-jobs-report%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2058066&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>EMPLOYMENT \u200cGROWTH SURPASSES EXPECTATIONS WITH 336,000 JOBS \u2062ADDED IN SEPTEMBER<\/h2>\n<p>A scorching\u2062 hot jobs report sent shockwaves through the markets on \u200bFriday, causing a bit of unease. While \u200cthe report itself is typically\u200b seen as good news for the\u200b economy, it has raised concerns that the Federal \u2064Reserve may keep <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/summers-were-at-or-on-the-brink-of-inflation-spiral-its-gotten-harder-to-fix-while-avoiding-recession\/\" title=\"Summers: We're at or on the Brink of Inflation Spiral, It's Gotten Harder to Fix While Avoiding Recession\">interest rates higher<\/a> for a longer period of time.<\/p>\n<p>The Bureau of Labor Statistics reported that the economy \u2064added an impressive 336,000 jobs in September, surpassing the expectations of forecasters. Additionally, the report \u200drevised upwards the employment gains in July and August \u200dby a combined 119,000.<\/p>\n<p>The numbers indicate that job growth is \u2063not slowing down, but rather accelerating. This\u2064 poses\u200b a challenge for\u2063 the Federal Reserve, as it has been raising interest rates to combat inflation. A stronger labor\u2063 market\u200b can potentially lead to increased inflation, which may require interest rates to remain higher for an extended period or \u200ceven be raised further.<\/p>\n<p>Many economists had anticipated that the labor market would have already been impacted by \u200dthe Fed&#8217;s rate hikes over the\u2064 past year. The market&#8217;s aversion to higher interest rates has made the country&#8217;s economic outlook more uncertain, despite the technically positive jobs report.<\/p>\n<blockquote>\n<p>&#8220;One of the big oxymorons on Wall Street is whether Good News is good news or Good News is bad news? In this case good (jobs) news is bad news for the market,&#8221; said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.<\/p>\n<\/blockquote>\n<p>The bond markets\u200c reacted swiftly to the \u200cpossibility \u2064of a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/despite-skyrocketing-inflation-janet-yellen-will-keep-pushing-for-biden-spending-agenda\/\" title=\"Despite Skyrocketing Inflation, Janet Yellen Will Keep Pushing For Biden Spending Agenda\">higher interest rate environment<\/a>. Benchmark 10-year Treasury yields briefly reached 4.887% on Friday, while 30-year yields climbed as high as 5.05%, the highest they have\u2062 been since just before the start of the Great Recession in 2007.<\/p>\n<p>The stock market\u2062 also responded to the fresh data,\u200d with futures on major indices plummeting in pre-market \u2063trading. However, as the morning\u200d progressed, these losses were partially recovered, and the\u2064 indices \u2062turned positive \u200bmidday as\u200d investors\u2062 attempted to shake off the impact of rising Treasury\u2063 yields.<\/p>\n<p>Notably, this is the last employment report before the Federal Open Market Committee\u2063 (FOMC) meets at\u2062 the end of the month to decide whether to maintain the\u2062 interest rate target at 5.25% to 5.50% or raise it to 5.50%\u200c to 5.75%.<\/p>\n<blockquote>\n<p>&#8220;Today&#8217;s report drove yet another increase in Treasury \u2063yields and\u200b fanned the flames that the\u2062 FOMC may hike the \u200cfederal funds rate one more time \u200dat one of its two remaining meetings of the year,&#8221; noted Wells Fargo economists.<\/p>\n<\/blockquote>\n<p>According\u2063 to the CME Group&#8217;s FedWatch tool, which calculates probabilities based on futures contract prices, investors currently see a 71% chance that the Fed will not raise rates again\u200b before the\u2064 end of the year. However, the strong jobs \u2062report and positive job openings data have slightly shifted these odds. Just a week ago, the odds of\u200d a \u2062pause\u200b were nearly 82%, but now there are implied odds\u2064 of around 40% for at least one more rate revision before the end \u2064of 2023.<\/p>\n<p>The job\u200d openings report, released earlier\u2062 in the week, also showed an unexpected upside. The number of U.S. <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wall-st-closes-down-for-3rd-straight-session-on-fed-rate-hike-worry\/\" title=\"Wall St closes down for 3rd straight session on Fed rate hike worry\">job openings rose<\/a> to 9.61 million \u2063in August, reversing the trend after three consecutive months of declines.<\/p>\n<blockquote>\n<p>&#8220;Any wonder why the Fed expects to \u2063raise interest rates again? With 1.5 job openings for every unemployed worker, there is \u200clittle\u200b evidence of substantial easing\u2064 in labor market demand, a risk to getting inflation lower,&#8221; \u200bsaid \u2063Greg McBride, chief financial analyst at Bankrate.<\/p>\n<\/blockquote>\n<p>Inflation has proven to \u200dbe stubborn in recent months. The consumer price index \u200crecorded an inflation rate of 3.7% \u2063in \u2064August, up from\u200c a low of 3% in \u2063June. The \u200d<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/good-news-is-bad-news-as-markets-react-to-strong-jobs-report\/\" title=\"Markets react negatively to strong jobs report\">personal consumption \u2062expenditures\u200d price index<\/a>, the Fed&#8217;s preferred gauge, showed a 3.5% increase for \u2064the year ending in August, surpassing the Fed&#8217;s target range of 2%.<\/p>\n<p>The Fed will closely monitor the upcoming CPI numbers for September, which will \u2062be released next Thursday, as well as the PCE data, which will be released\u200b just four days before the central bank officials gather in Washington, D.C., to determine their next steps on interest rates.<\/p>\n<p>However, the impact of this week&#8217;s jobs news extends beyond the Fed and investors. The\u2063 robust\u2063 employment and job openings data also have a direct negative effect on consumers. Higher interest rates make buying a home or taking on credit card debt more expensive.<\/p>\n<p>Mortgage \u2064rates have skyrocketed to levels not seen in decades. As of Friday, the average rate \u200don a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/middle-class-millennials-hard-hit-by-housing-market\/\" title=\"Middle Class, Millennials Hard Hit By Housing Market\">30-year fixed-rate mortgage<\/a> has surged to 7.84%, marking an increase of over 0.6 percentage points in just the past month. The last time mortgage rates were this high was in 2000.<\/p>\n<p>During a speech at the White House, President Joe Biden celebrated \u2062the job growth but\u200b avoided addressing the negative implications of a strong labor market on the Fed&#8217;s decision-making.<\/p>\n<blockquote>\n<p>&#8220;The unemployment \u200brate\u2062 has stayed below 4% for 20 months in a row, the longest stretch in 50\u2064 years,&#8221;\u2064 Biden said. &#8220;We \u2063have the highest share of working-age Americans in the workforce in 20 years. It&#8217;s no accident. \u2062It&#8217;s Bidenomics. We&#8217;re growing the economy from the middle \u200dout and the bottom up and not the\u2064 top \u200ddown.&#8221;<\/p>\n<\/blockquote>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">CLICK HERE TO READ\u2062 MORE \u200dFROM \u200bTHE WASHINGTON EXAMINER<\/a><\/p>\n<p> <\/p>\n<h2> How might the rise in job openings impact wages and benefits for \u200djob seekers?<\/h2>\n<p><span>  N the labor market,&#8221; \u2062said Josh Lehner, an economist at\u200c the Oregon \u2064Office of Economic Analysis.<\/p>\n<\/blockquote>\n<p>Despite the concerns over potential interest rate hikes, the strong employment growth should be seen as a positive sign for the economy. The increase in job creation indicates a robust labor\u2062 market and suggests that \u2064businesses are expanding and\u200d hiring more workers. This bodes well for consumer spending, as more individuals have \u200csteady incomes\u2064 and can contribute to economic growth.<\/p>\n<p>Furthermore, the rise in job openings implies that there are ample opportunities\u200c for job\u200b seekers. This \u200bcan\u2063 lead to higher competition among employers, pushing them to offer better wages and benefits to\u200c attract and retain talented\u200b workers.\u2063 Ultimately, this \u2063can result in \u200cimproved living standards for individuals and a more prosperous\u2064 society as a whole.<\/p>\n<p>However, it is\u200b crucial for policymakers to strike a \u200bbalance between supporting economic growth and managing inflation. The Federal Reserve must carefully consider the\u200d impact of its interest rate \u2062decisions on the labor market and\u200b overall economy. While higher interest rates can help contain inflationary pressures, they may also hinder job\u200c creation and \u2064economic expansion.<\/p>\n<p>Ultimately, the decision to\u2064 raise interest rates or maintain the current levels rests with the Federal\u2062 Open Market Committee. They will\u200b assess various economic indicators, including employment data, inflation rates, and consumer spending, to determine the appropriate course of action. The September jobs \u200breport has certainly added a layer of complexity to \u200ctheir deliberations.<\/p>\n<p>As investors and market participants await the Federal Reserve&#8217;s decision, it is important to keep in mind that\u2064 employment growth is a\u2063 crucial driver of \u200ceconomic prosperity. While concerns over interest rates may cause temporary market fluctuations,\u2064 the sustained creation of jobs \u200cis a positive for individuals and the\u200d overall economy.<\/p>\n<p>The September jobs report may \u2064have caused unease \u200cin the markets, but it also highlights the resilience and strength \u2064of the U.S. labor \u2062market. With job \u2064growth surpassing expectations, the focus now shifts to the Federal Reserve&#8217;s response. As policymakers consider their\u200d next move, it is essential to strike\u200d a balance between supporting economic growth and managing inflation. \u200bUltimately, sustaining\u200d job creation remains vital for the well-being of\u200b individuals and the prosperity \u200cof the nation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A strong jobs report spooked the markets on Friday as it suggests the Federal Reserve may maintain higher interest rates for an extended period. In September, the economy gained 336,000 jobs, according to the Bureau of Labor Statistics.<\/p>\n","protected":false},"author":1,"featured_media":2058067,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2058066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2058066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2058066"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2058066\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2058067"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2058066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2058066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2058066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}