"Private payrolls were up by +42k in October (vs. +30k expected), which was a clear rebound from the -29k contraction in September. That's a release that's taken on more significance than usual, given we're missing the usual jobs report because of the shutdown,"
"The U.S. outlook was more resilient than feared."
"Those [numbers] meant investors dialled back their expectations for Fed rate cuts in the months ahead,"
"That's well below the break-even pace of payrolls ... Labor market slack, therefore, likely continued to accumulate in October, suggesting the official data will make a strong case for the FOMC to ease aga"
S&P 500 futures were flat after the index rose 0.37% the prior day. Asian markets gained broadly while Europe's STOXX 600 ticked down in early trading. Market participants are divided on whether the Federal Reserve will cut interest rates in December or keep them steady to combat inflation. ADP reported stronger-than-expected private payroll gains, suggesting some labor-market resilience, while others warned that job growth is decelerating toward stall speed. The CME FedWatch shows 67.3% of traders expect a 25bp cut. Deutsche Bank reduced the odds of a December cut; Pantheon highlighted accumulating labor-market slack.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]