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Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2022 in New York. Stocks continued their gains on Thursday with the Dow rising nearly 400 points after a new GDP report beat expectations.
Spencer Platt | Getty Images
Stock futures rose on Friday as investors weighed a strong jobs report that caused a split between expectations for a stable economy. and expectations for a rate cut by the Federal Reserve next year.
Futures are linked to the Dow Jones Industrial Average it lost just 60 points, or 0.2%, after falling after the early release of the November labor report. S&P 500 futures down 0.2% while Nasdaq 100 futures down 0.5%.
The sentiment weighed on the recession after the non-farm payrolls report in November showed a sharp drop in the unemployment rate, with the measure up of the 10-year Treasury trailing over 10 basis points at 4.23%. (One basis point is equal to 0.01%.)
The unemployment rate fell to 3.7% in November from 3.9% the previous month. It was intended to last. The economy added 199,000 jobs, more than the 190,000 estimate from Dow Jones and well ahead of the 150,000 jobs added in October.
Earlier data showed concerns that the economy is too hot for inflation to ease for the Fed to start backing away from its high rate policy. Some traders expect the Fed to start reducing rates in early March.
On the other hand, the monthly jobs report could also support the idea that the Fed is leading the US economy in a weak position – an economic recovery amid the collapse of the economy. price Average hourly earnings, seen as a leading indicator of inflation, rose as expected in November as the economy added more work than last month.
“Those who are arguing for a soft landing have evidence to support them today, the only warning is that the economy may not come in for a soft landing, because it is in high flying air,” said Christopher Rupkey, chief executive. the economy in FWDBONDS. “Time will tell whether this expansion of growth and the pace of job creation will again drive inflation to encourage Fed officials to keep rates high for the long term.” next year.
The Fed will release its latest decision on Wednesday.
Earlier in the week, economists received independent payrolls data that showed employers were adding fewer jobs than the economy had forecast, and job openings data showed a decline in the lowest level since March 2021.
Stocks have largely struggled this week, with the Dow losing 0.4% and the S&P 500 falling 0.2% – putting both indices on track to snap a five-week winning streak. The Nasdaq climbed back into positive territory for the week. It is currently up 0.2%, and if it stays in the green, it could deliver a six-week winning streak.