The U.S. economy demonstrated surprising resilience in September, as employers created 254,000 new positions, significantly surpassing analysts’ predictions of 150,000. Furthermore, the unemployment rate decreased from 4.2% to 4.1% compared to the previous month.
Another employment report hit a home run under the Biden/Harris Administration.
In September, we saw job growth across all sectors, from health care to the service industry, totaling more than 250,000 positions added last month.
— Senator Ben Cardin (@SenatorCardin) October 6, 2024
Michelle Cluver, who heads ETF model portfolios at Global X, remarked, “Following a summer marked by weak labor data, this is a promising indicator that the U.S. economy is still robust and supported by a strong labor force.
Last week revealed that the U.S. labor market is even more robust than we anticipated.
“It’s not merely a vigorous recovery, but a type of recovery that is quite sustainable.” @mikemadowitz expresses his views in @nytimes
— Roosevelt Institute (@rooseveltinst) October 7, 2024
We find ourselves in a situation where positive economic news bodes well for the equity markets, as it heightens the likelihood of a soft landing.
Here’s one of the clips from this morning’s discussion with @annmarie, @daniburgz, and @FerroTV
Thank you Annmarie, Dani, and Jonathan for including me on @bsurveillance https://t.co/80gnFxc69F #economy #markets #federalreserve #growth #inflation @business @markets @economics #econtwitter— Mohamed A. El-Erian (@elerianm) October 8, 2024
The robust jobs report propelled stock prices higher, with the Dow Jones Industrial Average climbing 0.9% to 42,352.75 and the S&P 500 advancing 1.22% to 18,137.85. The Nasdaq Composite added 341.16 points, or 0.81%, concluding at 5,751.07. Major technology stocks surged on Friday, contributing to the Nasdaq’s superior performance.
The financial sector led the S&P 500 during the trading session, soaring 1.6% to reach a record high.
September jobs report sparks market rally
Small-cap stocks also surged, recovering losses experienced in the previous days.
Rick Rieder, chief investment officer of global fixed income at BlackRock, anticipates that the Federal Reserve will implement modest rate reductions in response to the strong jobs report. “We believe that the rate decline should persist, but given today’s robust data, it’s increasingly likely that the Fed will move in increments of 25 basis points, rather than the previously anticipated near-term cuts of 50 basis points,” Rieder commented.
Gina Bolvin, president of Bolvin Wealth Management, stated, “Today’s report is positive for stocks, and the economy continues to exhibit remarkable resilience. I feel more optimistic today than yesterday—and I was already bullish then.”
Job growth was widespread across various sectors, with education and health contributing 81,000 positions, leisure and hospitality adding 62,000, construction increasing by 28,000, and business services contributing 41,000 new jobs. However, manufacturing experienced a decline of 8,000 positions. Diane Swonk, chief economist at KPMG, remarked, “I genuinely believe we are experiencing the most favorable kind of soft landing.”
The noteworthy job growth coupled with a declining unemployment rate indicates that the U.S. economy maintains a strong foundation despite anxieties regarding a potential slowdown.
This data sets a constructive tone for the economic outlook in the near future.
