I posted earlier on Morgan Stanley unmoved by the jobs report:
In the preamble to that post I spoke about the data. Repeating it here ’cause it contains what should be useful info:
December payroll data from the US was much stronger than expected:
The +256,000 headline significantly beat expectations of 160,000.
The highest expected was +200,000, while the 140K-185K range showed the most clustering. If you didn’t know this going into the data you are missing out. Results that are well outside of what is expected usually precipitate big moves, as evident on Friday. Its why Guisseppe and I post such data ahead of major releases such as NFP, CPI and such.
Anyway, back to
After the data Goldman Sachs cut back its expectations for Federal Open Market Committee (FOMC) interest rate cuts in 2025.
- GS now expect only 2 cuts, from 3 previously.
- GS cite the growth in jobs above expectations and now expect an interest rate cut in June and December.
S&P 500 futures, opening soon (at 6pm US Eastern time Sunday evening)
