A Promising Non Farm Payrolls Data Set Course For Higher Rates Hike In The Coming Quarter

As a result, US bond yields rose, US stocks fluctuated lower on Thursday (6th), and defensive stocks such as utilities and real estate fell, while energy stocks outperformed.

The US non-farm payrolls data has just been released on Friday (9th).

According to last month data, the United States Department of Labor announced that the number of people receiving unemployment benefits for the previous week was 219,000. This figure was higher than the expectations of the market, which were 203,000, and the revised value from the previous week, which was 190,000. The unemployment rate is close to historic lows, which indicates that the job market is doing well. , On Thursday, everything appears still to be in order, but after the fresh updated data is made public on Friday, things could take a different turn.

After data was revealed that the U.S. labor market was very strong in September, with most sub-statistics higher than expected, U.S. stock index futures dropped in pre-market trading on Friday (7th).

According to the Bureau of Labor Statistics of the United States, the total number of nonfarm payrolls in August remained the same as it was in July at 315,000. The total number of nonfarm payrolls in July was revised up by 11,000 . The cumulative rate of job growth in July and August was 11,000 greater than what had been published in the earlier version of this article.

In addition, the unemployment rate fell below the consensus estimate to 3.5%, down from 3.7% in the previous month. This indicates a labor market that is still very hot, which is expected to keep the Federal Reserve on its aggressive course of interest-rate rising.

On the political and economic front, why global investors are focusing on the impending nonfarm payrolls report for September is because this report will assist investors in determining whether or not the Federal Reserve will adjust its hawkish interest rate hike schedule on the coming 13 October

The early-week rally in U.S. stocks was interpreted by the vast majority of market observers as a bear market rally, and the sustainability of the bounce has been called into question. However, when viewed through the lens of contrarian investment, the widespread pessimism serves as a signal that opportunities for profit exist. This is the key distinction between institutional investment banks and individual investors, including retail investors. When individual investors sell, institutional funds will be more aggressive in their efforts to acquire funds.

When there is positive news regarding the economy of the United States, there is only negative news regarding the market. The market is concerned that if the U.S. economy, and particularly labor statistics, continues to perform well, the Federal Reserve will continue to rapidly raise interest rates, which suggests that the 300 basis points that the Fed has lifted so far this year may not be enough. Increase both the impact and the level of uncertainty on the market.

The national average for mortgage rates has now climbed above 7% (representing a staggering increase of 4%, or 133%, since the beginning of the year). Average mortgage payments have quadrupled thus far . And yet, the Federal Reserve believes that by continuing to upraise the rate hikes, they will be able to stop the inflation that they have caused.

Anyhow, just like a tin can that’s been subjected to a lot of pressure, the cracks will appear before long, the tin is made of so thin material that it might not be able to be repaired due to extreme pressure , and the can as a whole will be crushed.

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