Strong Nonfarm Payrolls Print Lifts Wall Street, Keeps Rate Cuts Off Table

Economic Indicators - The latest jobs report showed 130,000 non-farm payrolls added, significantly better than expectations, with a minor revision of last month's payrolls from 50,000 to 48,000 [1] - The unemployment rate decreased to 4.3%, down from 4.6%, indicating a positive trend in the labor market despite an increase in labor force participation [2] - Private payrolls increased by 172,000, while manufacturing payrolls saw a slight increase of 5,000 after previous declines [2] Wage and Inflation Data - Hourly average earnings increased by 4% month-over-month and 3.7% year-over-year, which is a tenth lower than the previous month but higher than expectations [3] - The wage growth data suggests inflationary pressures may persist, impacting interest rate expectations [3] Interest Rate Outlook - The strong jobs report has led to a firming of bonds and a potential delay in anticipated Federal Reserve rate cuts, with the 10-year yield rising as a result [4][7] - There is a consensus that rate cuts may not occur in the next two meetings, as the labor market shows strength [8] Housing Market - Mortgage applications remained unchanged at a 30-year fixed rate of 6.21%, with overall housing market activity still sluggish [8][9] - Recent data indicates a decline in home purchases by 2.4%, while refinances increased by 1.2%, suggesting ongoing challenges in the housing sector [9][10]