With the release of the U.S. non-farm payrolls rise to 199k which exceeded the market expectations on 8 Dec 2023, what I see here is a very strong and robust labour market. With the unemployment rate falling to 3.7% which was an improvement in the labour market vs the previous month and analyst expectations.
The U.S. economy is not in bad shape, and way better than what most of us had expected.
With the higher payrolls and low unemployment rates, this would FED strong indications that the US economy is strong and should be able to absorb the effect of the higher interest rate hike to curb inflation with a clear goal of 2% in making, I would expect the market to be highly volatile, especially on the bets on when will FED start cutting interest rates.
The current valuations of US stocks are high for some companies , all three market indices have risen to very high level and market corrections might come any time soon which is healthy to the economy.
Please trade with extra caution and good luck everyone.
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