We asked traders, "Did the markets jump the shark?"
Following the Federal Reserve's dedication to patience, traders may have jumped the shark in an unexpected sell-off in February.
Non-farm payrolls rose by 295,000 in February(beating expectations of a 240,000 rise) and the unemployment rate ticked down to a 7.5-year low of 5.5%, but the innards of the report were more mixed than the headlines. As we’ve noted repeatedly, wage growth has been the missing piece to the Fed’s rate hike puzzle, and today’s modest reading on that front still leaves plenty of questions for the Federal Reserve.
This time, we asked traders, "Was the sell-off following the February employment situation report due to anticipation of a June tightening or broader weakness in equity markets? Explain."