WS #17017
The US labor market delivered a decisive blowout in October, adding 165,000 jobs against a consensus of 65,000 and pushing the unemployment rate down to 4.1%. This strength has immediately reignited fears of a December rate hike, causing the 10-year Treasury yield to spike and forcing a repricing of growth assets. Futures are currently splitting, with the Nasdaq up slightly while the Dow falls, indicating a rotation away from rate-sensitive tech toward value and financials.
NFP Blowout and Rate Hike Fears
The US labor market delivered a decisive blowout in October, adding 165,000 jobs against a consensus of 65,000 and pushing the unemployment rate down to 4.1%. This strength has immediately reignited fears of a December rate hike, causing the 10-year Treasury yield to spike and forcing a repricing of growth assets. Futures are currently splitting, with the Nasdaq up slightly while the Dow falls, indicating a rotation away from rate-sensitive tech toward value and financials.