Amidst the prevailing sentiment that the US economy might be losing momentum, the latest Non-Farm Payroll unveiling added a captivating dimension to the narrative. Projections, previously at 180,000, surpassing the earlier 150,000, witnessed a notable beat as the job market exhibited a robust performance, with the latest NFP registering at an impressive 199,000. In November, jobs were gained in healthcare and government, while manufacturing also realized an uptick in employment as workers returned from strikes. Concurrently, the unemployment rate defied expectations, descending from 3.9% to 3.7%, contrary to the anticipated unchanged print.
Notably, month-on-month average hourly earnings experienced an upward tick from 0.3% to 0.4%, culminating in a data release that initially propelled the US dollar to new heights. The repercussions may manifest as a potential setback for US equities, prompting a reassessment of interest rate projections and a probable adjustment to the timeline for the Federal Reserve’s anticipated rate cuts. Before the release, the consensus hovered around March of the coming year. As the plot thickens in the saga of the US economy, the market’s response is poised to be nothing short of thrilling.
Sources: US Bureau of Labor Statistics
Piece written by Tiaan van Aswegen, Trive Financial Market Analyst
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