Last Friday, the Bureau of Labor Statistics posted strong jobs data for November 2024. Job growth increased, rebounding from hurricanes and strike disruptions in October. However, the unemployment rate rose to 4.1%, up from 4.0%. The increase might give the Federal Reserve a reason to cut interest rates later this month.
Wages increased last month. Strong consumer disposable income will drive the economy. Additionally, in the September and October revisions, the economy created 56,000 more jobs than originally estimated.
Bond markets reacted positively to the data. The 20+ year Treasury Bond ETF (TLT) and 7-10 Year (IEF) both rose. Bank stocks like JPMorgan Chase (JPM) and Wells Fargo (WFC) rose slightly. Bank Of America (BAC) stock fell.
Economists expect the Fed will continue with its plan to cut rates later this month. Fed policymakers like President Mary Daly (San Francisco) and Austan Goolsbee (Chicago) were both open to another rate cut. Still, they would support slowing the pace of rate cuts.
Markets set an 85% chance of a rate cut at the upcoming Fed meeting on Dec. 17-18. Traders expect rates to fall by 75 basis points in 2025.
Stock markets rocketed higher on December 6, 2024. The Nasdaq (QQQ) gained the most among the indices. It added 0.81% to close at 19,859.77. The Dow fell by 0.28%.
