Week of 10/02-10/06 Indexes Reverse Losses After Digesting September Jobs Report

The stock market set the recovery stage on its late Friday session after a stronger-than-expected September jobs report surprised investors. The U.S. economy created 336,000 jobs during the September period, which is almost twice the number expected. The jobs report is an important metric for the Federal Reserve to gauge inflation. As the labor market remains strong, the FED will have to keep restrictive policy for a longer period of time. This is not necessarily good news, as everyone wants to see interest rates go down or at least stop rising. One of the many concerns for investors is the fear of a recession, where a sudden shift in economic stability happens. While the job report is not necessarily good news in the short term, it indicates the higher possibility of a soft landing. A soft landing meaning the FED will gradually place the economy back in an ideal status without the whipsaw effect of a recession. This sentiment seemed to be digested throughout the day in wall street and all over the market as stocks surged to closeout the week on a positive note. This now places the FED in the bullish forecasted position to keep interest rates unchanged during its November FOMC meeting (Oct 31st, Nov 1st). Stay vigilant throughout the month as there are other economic reports coming out that could affect this forecasted outcome.