Economic Data
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April’s U.S. jobs report came in better than expected, with 177,000 new non-farm payrolls added—well above the 135,000 forecast. The unemployment rate stayed at 4.2%, and wages continued to grow steadily, up 0.2% on the month and 3.8% over the year.
Hiring was strongest in healthcare, transport, and construction, showing that key sectors are still holding up well. The rise in the labour force participation rate also points to growing confidence in the jobs market.
Markets welcomed the news. S&P 500 futures moved higher, while two-year Treasury yields climbed to 3.74%, as traders pulled back expectations for quick interest rate cuts. The strong payroll numbers suggest the economy is still in decent shape, easing some recession worries and giving investors a bit more confidence. All in all, the report paints a picture of a job market that’s staying resilient even as other parts of the economy show signs of cooling.
Net positive for risk assets!