Wall Street Sees Growth As Jobs News Sparks Positive Momentum


The stock market experienced a dramatic turnaround on Friday, erasing its morning losses after a closer examination of a surprisingly strong report on the US job market. The S&P 500 rallied 1.2% after rebounding from an initial drop of 0.9%, the Dow Jones rose by 288 points, or 0.9%, and the Nasdaq saw a gain of 1.6%. Initially, stocks fell in response to a report revealing that US employers added almost double the number of jobs expected by economists, causing concerns about inflation and potential interest rate increases by the Federal Reserve.

High interest rates are generally frowned upon by Wall Street as they negatively impact the prices of various investments. Despite the Federal Reserve raising its main interest rate to the highest level since 2001, the job market has remained strong. However, high interest rates can dampen inflation, potentially leading to an economic slowdown and increasing the risk of a recession in the future. A potentially positive sign for the Federal Reserve is that average wages rose at a slower rate in September than anticipated by economists. While this may be discouraging for workers trying to keep up with inflation, it could reduce companies’ inclination to raise prices for their products.

Brian Jacobsen, chief economist at Annex Wealth Management, believes that the focus should be on moderate wage gains rather than job growth. He states, “The labor market isn’t overheating, it’s still healing.” Average hourly earnings experienced the slowest year-over-year growth since June 2021. The upcoming reports on consumer and wholesale inflation levels will be crucial data points for the Federal Reserve’s next interest rate announcement on November 1.


Read the full article.

This website may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. This site operates under the assumption that this not-for-profit use on the Web constitutes a “fair use” of the copyrighted material as provided for in Title 17, Chapter 1, Section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond such “fair use,” you must first obtain permission from the original copyright owner.

As a subject matter expert, Brian Jacobsen, Chief Economist at Annex Wealth Management is often interviewed with individuals not affiliated with the firm. Annex Wealth Management does not have control over the content or opinions expressed by these unaffiliated parties.

Annex Wealth Management, LLC is an investment advisor registered with the SEC doing business as Annex Wealth Management® (“Annex”). The information provided should not be relied upon by the viewer as legal or tax advice, or research or investment advice regarding any investment, nor should it be construed as a solicitation or recommendation to purchase or sell any stock, bond, or other security. This site contains excerpts from Annex’s live, unscripted and extemporaneous broadcasts. Considerable efforts are made to provide a balanced presentation and a sound basis for evaluating the content, however, live broadcasts don’t always lend themselves to a full and fair discussion of all the material facts and investor may want to consider before investing. All items on this site have been previewed by a qualified supervisor at Annex to avoid unqualified, promissory, exaggerated, unwarranted, or misleading statements or claims, including promises of specific future returns or projections of investment performance.