Disappointing job report slightly pumped equity, Gold still going lower
U.S. labor market disappointed the expectation, where non-farm employment change had only increased by 29K in the month of September.
The expectation before the job report came out was actually 84K, so the difference is massive here. Today we also got an unemployment rate, which went up to 4.2%. Also, wage growth number came up disappointing, with its yearly level coming back to the lowest point since May 2021.
The equity market reacted positively in the morning today, because Wall Street now expect that the Fed will not increase the interest rate again in October, due to this disappointing job report. On the other hand, gold and precious metals are still going lower today.
These statistics surprised the analysts, but it's still somewhat expected since the labor market has been disappointing for the regular people for quite some time now.
The Fed now faces a tough decision, because inflation remains high, and the market expect them to increase interest rates one more time before the end of the year. However, if the job market continues to disappoint, the Fed may have to simply hold the rates, instead of raising it one more time.
Related assets: Gold, Silver, Palladium, Platinum, Copper