What a difference 0.1% makes

Five weeks ago, when the January employment report was released, the stock market took a dive, supposedly triggered by a wage increase 50% above expectations (0.3% versus 0.2% expected). Today´s release, which showed a robust employment gain of 313 thousand, more than 50% above the 200 thousand expected, but with wage growth coming in 50% below expectations (0.1% versus 0.2% expected) was accompanied by a strong rise in the stock market. Meanwhile Fed BoG members Powell and Brainard mouthed strong words for more than three rate hikes this year. Powell mentioned, “avoid overheating” while Brainard said “winds” had changed from “Head” to…

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