Stock Markets rise, USD fall!
Meanwhile, Wall Street has reacted positively, but a more detailed data analysis says something else. Data were so mixed, and its understanding takes time, which is why market participants can have a wrong reaction, but in subsequent days, we expect to see the different reactions by more data digesting.
A few days ago, we had JOLTs numbers, and as I mentioned, it represents two job opportunities for each job seeker. The data shows that the unemployment rate rose from 3.5% to 3.7%, which can put the doves in a stronger position, but at the same time, the number of new jobs is still substantial. At the same time, Thursday`s Initial Jobless claims also show fewer unemployment benefits applications.
The US business added 315,000 nonfarm jobs in August, higher than expected; even if it was much less than half-million added in July, it is still much more than estimated. In addition, wage growth annually did not change at 5.2%, though it cooled from July on the monthly scale, down to 0.3% from 0.5%.
The immediate reaction was unexpected; stock prices rose, and the US dollar fell, but next week we have to wait and see more interpretations of these data, which can be shocking for optimists. I can see that these data increase the chance of a 75 basis point rate hike as they show the labor market in a stronger position.
At the time of writing, the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite are gaining about 1.1%.
