Despite a better-than-expected U.S. jobs report, two of the main Wall Street indexes failed to achieve gains on Friday.
The stock market delivered a mixed performance on Friday during trading hours. According to the Bureau of Labor Statistics, the U.S. added more jobs in October, adding 261,000 new jobs. Yet, the concerns about the federal reserve’s aggressive monetary policy had made investors shaken about the U.S. economic outlook.
Hours after announcing the labor market report, we saw that two of the main indexes posted minor declines. The S&P 500 declined by 0,04% and is on its way to posting a 0,00% gain by the end of the day. Nasdaq composite, on the other hand, was down by 50% to 10,296.0 points. The market volatility has affected the tech gains in the past three weeks because the FED is persisting on its aggressive interest rate hikes in the next meeting. In its attempt to shrink the largest jump in food and energy prices since November 1981, the FED lifted its interest rate four aggressive times this year. However, the majority agrees that this interest hike caused panic, losses, and a state of uncertainty among shareholders due to the mixed stock market performances.
Market analysts expected that the U.S. labor market would benefit from 195,000 additional new jobs in October. Yet, despite the slowing growth process in the global market, the report delivered a better-than-expected jobs number.
The U.S. non-farm payrolls added 261,000 in October, yet its unemployment rate had jumped to 3.7% in the same month. The average hourly rating had increased by 0.1% from the expected rate of 0.3%. By taking a closer look at the strong labor report, experts believe that the labor market is softening. Yet, according to the FED’s aims and goals, the reports aren’t enough data for an easing monetary policy. The CPI rate in the U.S. remains above 8%, significantly higher than the targeted inflation rate of 2–3%.
On top of that, the labor market still adding jobs at a slow pace, compared to its pre-pandemic levels. The good news was that the healthcare sector started getting back to its normal level by adding 53,000 jobs In October and September. Industrial and manufacturing activities started to recover from the pandemic waves and the Ukrainian crisis by adding 32,000 new positions. Leisure and hospitality came in second place in terms of the number of newly added jobs by 35.000 added jobs.
As for the U.S. dollar index, the dollar has lost its past two months’ confidence and recorded four days of decline against its peers, the Japanese yen and the Euro. The dollar is expected to fall in the next two months, yet reports suggest that the government is considering supporting it with BTC.
The U.S. government is seriously considering supporting the dollar and attaching it to BTC in the next year. That said, we will wait for the October CPI report, which is expected to play a critical role in future monetary policy decisions.