- U.S. job growth slowed more than expected in April and annual wage gains cooled, signs of a looser labor market which are good news for markets and the Federal Reserve that will likely require more such signals before pivoting from a higher for longer policy.
Nonfarm payrolls increased by 175,000 jobs last month, the Labor Department said in its employment report on Friday. March was revised up to show payrolls rising by 315,000 jobs instead of 303,000. Economists polled by Reuters had forecast payrolls advancing by 243,000. The unemployment rate rose to 3.9% from 3.8%. Wages increased 3.9% in the 12 months through April after rising 4.1% in March.STOCKS: S&P 500 e-mini futures added to gains and were up 1.
“The Fed's looking for data points that pull them back away from this tighter-for-longer thought process. The one caveat would be that the labor market reports are notoriously fickle and what we see this month might not be what we turn around and see next month. It gives the Fed some hope, but it does not establish the trend for them.”“This report is not too hot not too cold and it’s just what the Fed wants to see.
“However, the key to the report is wages which came in a little bit cooler than the market was looking for.”“We need more evidence, but if we continue on this path, then I think that could change the timing of a rate cut, and it could mean instead of one, we might be looking at two rate cuts this year.” "The jobs report came in lower than expectations. However, you can see from the market's reaction that it is a welcome number for the market.