Stock Market Today: Stocks Stabilize After Jobs Report Jolt

O November employment report dealt a heavy blow to stocks today, with data from the Labor Department suggesting the Federal Reserve still has a long way to go in its efforts to slow the economy. Specifically, the US USA added a much higher-than-expected 263,000 jobs in November, while the unemployment rate remained steady at 3.7% and average hourly earnings grew 5.1% year-over-year. Stocks initially sold off heavily on the news, but the end of the day wasn’t as bad as the start.

“Investors are focused on persistent inflation and fear that aggressive rate hikes and the shrinking of the Federal Reserve’s balance sheet will lead to a recessionso today’s news that private sector hourly earnings grew 0.6%, easily beating the expected 0.3% increase, is a stinging interception during what was an impressive late-fourth-quarter rally “says José Torres, senior economist at Interactive Brokers. “It’s the third consecutive month of wage acceleration and it comes just two days after Fed Chairman Jerome Powell implied that labor market weakness is necessary to tame decades-high inflation.”

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