U.S. President Donald Trump argued that stocks should move higher following the release of a strong U.S. jobs report, pushing back against any negative market reaction and emphasizing that economic growth does not necessarily lead to inflation.
In a post published Friday morning on his social media account, Trump wrote that "with a great Jobs Report, like just announced, stocks should go up, not down," adding that strong economic growth has historically been associated with rising equity markets.
The president also challenged the view that faster economic expansion inevitably fuels inflation. "Growth does not mean inflation!" Trump said, arguing that sustained economic growth is essential for national prosperity and competitiveness.
The comments came shortly after the release of the latest U.S. employment data, which Trump described as a "great Jobs Report." Investors have been closely monitoring labor market indicators for clues about the strength of the economy and the future path of monetary policy.
Financial markets often react to employment data in complex ways. While strong job growth can signal a healthy economy and support corporate earnings, it may also raise expectations that policymakers could maintain tighter monetary conditions if inflationary pressures emerge.
Trump's remarks highlighted his long-standing focus on stock market performance as a measure of economic success. He suggested that investors should view robust employment figures as a positive sign for the economy rather than a reason for concern.
Wall Street's major indexes fell on Friday, as chipmakers lost steam following a sharp rally, while a stronger-than-expected monthly jobs report raised expectations of a hawkish monetary policy.
Nonfarm payrolls rose by 172,000 jobs in May after increasing 115,000 in April. The numbers were also much higher than the 85,000 forecast by a Reuters survey of economists.
Money markets now see a 98% chance that the U.S. Federal Reserve will hike interest rates by 25 basis points before the end of the year, up from a nearly 60% expectation before the data.