The U.S. Department of Labor announced on Friday night that the number of new non-farm jobs in September was 263,000, higher than market expectations, with the unemployment rate in September at 3.5%, lower than market expectations of 3.7%. After the data was released, US stock fell sharply. As of the close, the Dow Jones Industrial Average fell 2.11%, the Nasdaq fell 3.80%, and the S&P fell 2.80%.
This makes people want to understand the relationship between non-farm data and the US stock market.
Generally speaking, when the non-farm employment data is strong, it indicates that the economy will develop further, consumer demand will increase, the economic situation will be better, and the stock market will rise.
On the contrary, when the non-farm employment data is poor, it means that the economy may slow down, the willingness to consume is not strong, and the economic situation is not good, and the stock market will show a downward trend.
So why is the non-agricultural data good this time, but the US stock market performs poorly?
After the non-farm data exceeded expectations this time, the "hawkish" employment data made the market generally worried that Feder may continue radical policies, and the possibility of the Fed raising interest rates by 275 basis points in November has greatly increased.
The Federal Reserve has raised interest rates by 2300 basis points this year, and the federal funds rate range has increased to 3.00% to 3.25%.
In addition, the US released the August CPI data growth exceeded expectations, extinguishing the Federal Reserve's pace of slowing down interest rate hikes.
