The US stock market advanced after the release of the November jobs report, which solidified expectations for a rate cut by the Federal Reserve in December. The Dow Jones Industrial Average rose as investors reacted to the strong nonfarm payrolls data, which showed “strong” jobs growth in November.
The report’s positive impact was tempered by concerns about inflation, but overall market sentiment remained bullish. Analysts at various firms predicted that the Fed would cut interest rates again this month, citing a slowly slowing labor market and relatively contained inflation.
“We are seeing a ‘big rebound’ from October’s distorted jobs report,” said Adam Hetts of Janus Henderson Investors. “This trend should relieve some economic concerns and keep December’s rate cut expectations on track.”
The unemployment rate rose to 4.2% in November, but this was not enough to derail interest rate cut hopes. In fact, the uptick in the unemployment rate made the data even more favorable for rate cuts.
Friday’s jobs report also boosted shares of Trump Media & Technology Group Corp., which trades at a significant premium to its cash balance. The company’s stock rose 2.2% on Friday, adding to its gains for the week.
Market participants will be watching next Wednesday’s consumer-price index for November closely, but the strong jobs data has reinforced expectations for a quarter-point rate cut by the Federal Reserve in December.
As investors look ahead to the holiday season, stocks are likely to remain resilient. The second half of December often sees record highs, and traders expect the Fed to continue easing monetary policy over the next several months.
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-dip-ahead-of-november-jobs-report?mod=home-page