If December was a “live possibility” for a rate hike prior to the October jobs report, then today’s numbers may have just sealed the deal, after a staggering 271,000 jobs were added in the month and unemployment fell to 5%, the level that the Fed deems to be full employment. Ever since the October meeting, today’s jobs report was seen as one of two that could make or break the decision and based on the data, the decision suddenly looks pretty straight forward.
Let’s skip the formalities: today’s NFP report was essentially perfect. The marquee U.S. (and global) jobs report showed that the world’s largest economy created a stunning 271,000 jobs, crushing economist’s best estimate of 181k and the previous report’s negatively-revised 137,000 reading.
A 15-year high for tech stocks on the Nasdaq helped world shares to a 2-1/2 month peak on Tuesday, though more engine trouble for Volkswagen and a $5.1 billion cash call by Standard Chartered left Europe feeling flat.