Core Viewpoint - The unexpected increase of 119,000 non-farm jobs in September significantly exceeded market expectations, raising the likelihood that the Federal Reserve will not lower interest rates next month [1] Economic Impact - Kevin Hassett, Director of the National Economic Council, indicated that the government shutdown is expected to negatively impact Q4 GDP by 1.5 percentage points [1] - The strong employment report for September is not sufficient to offset other negative factors affecting the economy [1] Inflation and Interest Rates - The Consumer Price Index (CPI) for September showed better-than-expected inflation, which is currently above the Federal Reserve's 2% target [3] - There are concerns that lowering interest rates to support the labor market could prolong the high inflation cycle and increase risk appetite in financial markets [3] Employment Trends - The employment growth in September followed a downward revision of August's job gains from an increase of 22,000 to a decrease of 4,000 [1] - The recent trend shows fluctuations in job growth, with negative job additions in June, followed by increases in July and September [1] - Most job growth has been in the healthcare and education sectors, but the construction industry is also seeing an increase in jobs due to new factory openings driven by tax incentives [1][4] Unemployment Rate - Despite the significant job growth, the unemployment rate rose by 0.1 percentage points to 4.4%, attributed to an increase in labor force participation as more individuals begin to seek employment [1][4]

Group 1: Report Core Information - The report is about the US employment market as of November 20, 2025 [2] - The key data includes non - farm employment, recruitment, unemployment rate, and salary growth rate [2][3][4] Group 2: Recruitment Situation - As of October 31, 2025, the monthly average recruitment plan dropped significantly to 30,447 people, a decrease of 80,766 people compared to the September average, and it was 127,000 in 2021 (104,000 in 2019) [3] Group 3: Non - farm Employment - As of September 2025, the total non - farm employment increased by 119,000, with the government adding 22,000 and enterprises adding 97,000 [3] - In terms of industry structure, the retail industry added 139,000, the wholesale industry added 94,000, and the financial industry added 50,000 in September [3] - The unemployment rate in September rose to 4.4%, the highest since October 2021 [3] Group 4: Salary Growth Rate - As of September 2025, the average weekly salary growth rate of private non - farm employment increased to 3.8%, a slight increase of 0.3 percentage points compared to August [4] - In September, the growth rate of goods production was 3.7% (down 0.3 pct), and in service production, trade and transportation increased by 2.7 pct, information by 2.9 pct, and finance by 0.2 pct [4] - The non - farm employment presents a situation of apparent stability but internal weakness, with contradictory signals indicating weakening demand and a loose employment structure, which is not enough to prompt an immediate interest rate cut in December but strengthens the need for a subsequent interest rate cut cycle [4]

Group 1 - Morgan Stanley has withdrawn its prediction that the Federal Reserve will cut rates by 25 basis points in December, citing a robust September jobs report indicating economic resilience [1] - The strong employment data suggests that the summer economic slowdown may have been overstated, with a slight increase in the unemployment rate attributed to a rise in labor force participation rather than layoffs [1] - Morgan Stanley now expects the Federal Reserve to lower rates in January, April, and June 2026, bringing the policy rate down to a range of 3% to 3.25%, consistent with previous forecasts [1] Group 2 - Rick Rieder, Chief Investment Officer at BlackRock, believes that the report indicates potential employment growth remains weak, suggesting the Fed needs to continue cutting rates to fulfill its full employment mandate, though uncertainty remains about immediate actions [2] - Cleveland Fed President Loretta Mester stated that the September jobs report is crucial for the Fed's focus on inflation and maintaining a somewhat restrictive policy stance, emphasizing the need to keep monetary policy tight to ensure inflation returns to the 2% target [2] - Many Fed officials have indicated a cautious stance on further rate cuts this year due to inflation remaining above the 2% target, with analysts suggesting that without stronger evidence of a need for urgent support in the job market, a more cautious approach may prevail [2] Group 3 - Analysts note that upcoming fiscal stimulus measures, including personal tax cuts and accelerated depreciation allowances, may strengthen the U.S. economy next year, further supporting arguments against excessive rate cuts [3] - The minutes from the October 28-29 meeting indicate that Fed staff have raised their outlook for next year, reflecting expectations of stronger potential output growth and improved financial conditions [3] - John Roberts, former Fed research department deputy director, suggests that changes from the Inflation Reduction Act could boost economic growth by approximately 0.4 percentage points in early 2026, potentially lowering the unemployment rate and preventing at least one anticipated rate cut by the Fed [3]

Core Insights - The U.S. unemployment rate has continued to rise, increasing by 0.1 percentage points to 4.4% in September, following a nearly four-year high reached in August [1] Group 1 - The U.S. Department of Labor reported the unemployment rate for September, indicating a continued upward trend [1]

Core Insights - The unemployment rate increased in September as more individuals actively sought employment opportunities [1] Economic Indicators - The rise in the unemployment rate is attributed to a higher number of job seekers [1]

Market Overview - U.S. stocks experienced an upward trend, with the Dow Jones index increasing by over 150 points, closing at 46,312.60, a rise of 0.38% [1] - The NASDAQ rose by 0.40% to 22,655.24, and the S&P 500 gained 0.33% to 6,664.29 [1] Company Performance - Walmart Inc. reported third-quarter adjusted earnings per share of 62 cents, surpassing the expected 60 cents, with quarterly sales reaching $179.50 billion, a 5.8% year-over-year increase, exceeding the analyst consensus of $177.429 billion [2] - Walmart raised its 2026 adjusted EPS outlook to a range of $2.58–$2.63, up from $2.52–$2.62, with the updated midpoint above the $2.61 analyst consensus [3] - The company also increased its fiscal 2026 constant-currency revenue growth outlook to 4.8%–5.1%, up from the previous range of 3.75%–4.75% [3] Stock Movements - Cerence Inc. shares surged by 38% to $10.89 following better-than-expected fourth-quarter results, while Goldman Sachs maintained a Neutral rating and raised its price target from $10 to $11 [9] - PACS Group Inc. saw a 52% increase in shares to $25.64 after reporting better-than-expected quarterly sales [9] - Bath & Body Works Inc. shares fell by 24% to $15.96 after reporting worse-than-expected third-quarter results and issuing FY25 EPS guidance below estimates [9] - Canadian Solar Inc. shares dropped by 15% to $22.40 after a downgrade from Mizuho, despite a raised price target [9] - Meihua International Medical Tech Co Ltd shares fell by 27% to $0.17 following a 1-for-100 reverse stock split [9] Economic Indicators - Non-farm payrolls increased by 119,000 in September, exceeding market estimates of 50,000 [13] - The unemployment rate rose to 4.4%, the highest since October 2021 [13] - U.S. existing home sales increased by 1.2% month-over-month to an annualized rate of 4.10 million in October [13]

Economic Indicators - Non-farm payrolls for September increased by +119K, significantly better than the revised figure of -4K for August, marking a positive trend in job growth [2][3] - The unemployment rate rose by 10 basis points to 4.4%, attributed to an increase in the Labor Force Participation Rate to 62.4% [4] - The private sector contributed +97K jobs, with notable gains in Healthcare (+57K) and Leisure & Hospitality (+47K), while Manufacturing saw a decline of -6K [5] Jobless Claims - Initial Jobless Claims decreased to 220K, which is the lowest level since mid-July and below consensus estimates by 7K, indicating a stable job market [7] - Continuing Claims rose to 1.974 million, approaching the psychologically significant 2 million mark, warranting close observation in the future [9] Corporate Earnings - Walmart reported Q3 earnings of 62 cents, exceeding expectations by a penny, with revenues of $179.5 billion, up 1.33% from estimates [10] - Comparable store sales increased by +4.5%, and Walmart raised its guidance for Q4, reflecting a recovery from previous earnings misses [10][11] Market Sentiment - The positive employment data and corporate earnings reports have contributed to a favorable market sentiment, with major indexes showing significant gains [1][11]

Core Viewpoint - The U.S. non-farm payroll data for September shows a significant increase in employment, which may influence the Federal Reserve's interest rate decisions moving forward [2][3][6]. Employment Data Summary - In September, the U.S. added 119,000 jobs, exceeding economists' expectations of 50,000, marking the strongest monthly increase since April [3]. - The August non-farm payroll was revised down to a decrease of 4,000 jobs, and July's increase was also slightly revised down to 72,000, resulting in a total downward revision of 33,000 jobs for July and August combined [3]. Unemployment Rate Insights - The unemployment rate rose slightly to 4.4% in September, attributed to nearly 500,000 individuals rejoining or entering the labor force, while economists had anticipated it to remain at 4.3% [6]. - The report is significant as it provides the first official reading on this key economic indicator since the government shutdown began on October 1 [6][7]. Market Reactions - Following the report's release, U.S. stock index futures rose, and all major indices opened higher, with the Nasdaq index gaining over 2% [8]. - Despite the positive employment numbers, the interest rate swap market indicates that the likelihood of a Federal Reserve rate cut in December remains low, although traders have increased bets on a potential cut [10]. Federal Reserve's Position - The Federal Reserve's October meeting minutes revealed a growing divide among policymakers regarding the appropriateness of further rate cuts, with some members suggesting that maintaining current rates may be more suitable [7][11]. - Analysts noted that while the employment data is positive, the rising unemployment rate and slowing wage growth could keep the Fed's options open for a potential rate cut in December [11]. Inflation and Financial Stability Concerns - Cleveland Fed President Beth Harmack warned that lowering rates to support the labor market could prolong high inflation and increase financial stability risks [12][14]. - Harmack emphasized the need to apply downward pressure on inflation to return to the Fed's 2% target, indicating a cautious approach to further rate cuts [14].

Core Insights - The US jobs market added 119,000 jobs in September, exceeding analysts' expectations of 51,000 jobs [1] - The unemployment rate increased from 4.3% to 4.4%, marking the highest level since 2021 [2] - The Bureau of Labor Statistics revised down previous job growth estimates for July and August, indicating a decline in the US workforce [2][3] Job Market Data - The BLS now estimates that the US economy added 72,000 jobs in July, down from a previous estimate of 79,000, and lost 4,000 jobs in August, a revision from an initial growth estimate of 22,000 [3] - The official jobs report for October will not be released due to the federal government shutdown, with data for October to be published alongside the November report in mid-December [4] Economic Commentary - Nancy Vanden Houten from Oxford Economics stated that the September jobs report provides reassurance that the labor market was stable prior to the government shutdown, and does not necessitate a change in the Federal Reserve's interest rate forecast [5] - Senator Elizabeth Warren criticized the delay in releasing the October jobs report, highlighting the increase in the unemployment rate and a record number of layoffs since the current administration took office [6]

Core Insights - The U.S. labor market shows signs of stabilization before the government shutdown, with September non-farm payrolls increasing by 119,000, significantly exceeding the expected 51,000 [1] - The unemployment rate for September stands at 4.4%, higher than both expectations and the previous value of 4.3%, marking the highest level since October 2021 [1] - Average hourly wages in September increased by 3.8% year-over-year, surpassing the expected steady rate of 3.7%, but the month-over-month increase of 0.2% fell short of expectations and was lower than the previous month's 0.3% [1] Summary by Category Employment Data - September non-farm employment increased by 119,000, more than double the forecast of 51,000 [1] - August's job additions were revised down from an increase of 22,000 to a decrease of 4,000, with a total downward revision of 33,000 jobs for July and August combined [1] Unemployment Rate - The unemployment rate rose to 4.4% in September, the highest since October 2021, exceeding both prior values and market expectations [1] Wage Growth - Average hourly wages rose by 3.8% year-over-year in September, above the expected 3.7%, but the month-over-month growth of 0.2% was below expectations and a decrease from the previous month's 0.3% [1]