Nonfarm payroll data shows "good within the bad"; U.S. stock futures rise, but not enough to prompt Fed action this month

According to Odaily, U.S. stock index futures further extended gains after December employment growth came in slightly below expectations. Last month, U.S. non-farm payrolls increased by 50,000, lower than the market consensus of 73,000. The unemployment rate fell to 4.4% from a revised 4.5% in November. B.Riley Wealth Chief Market Strategist Art Hogan noted in the report: "The core takeaway from today's report is that, in the first on-time jobs report in three months, the good news outweighs the bad." The data also eased pressure on the Federal Reserve to cut rates again later this month, although the market still expects a rate cut later this year.

Jerry Tempelman, Vice President of Fixed Income Research at American Mutual Capital Management, said that due to data disruptions caused by a prolonged government shutdown, today's employment report provided economists with the most insightful glimpse of the labor market in three months. "We are watching the elevated unemployment rate—which reached a four-year high in the November jobs report—and how it might affect the Fed's meeting at the end of the month. The weak labor market backdrop supports a rate cut decision by the end of 2025, but does not raise enough concerns to support a further rate cut this month." (Golden Ten Data)