Here's How U.S. Markets Are Reacting to the Jobs Report

  • Gold declines and dollar rises as higher wages set in
  • Stocks retreat as higher wages could hit labor costs

BlackRock's Rick Rieder Says 'Wage Data Is Real'

The recent hurricanes threw one last punch: a hit to U.S. employment.

The number of workers on U.S. payrolls declined last month for the first time since 2010, despite expectations that they’d rise by 80,000, Labor Department figures showed Friday. The reversal reflects the severe disruptions from hurricanes Harvey and Irma. At the same time, the jobless rate fell to a new 16-year low, while wage gains accelerated.

Here’s how markets are responding.

Treasuries

Bond buyers looked past the payroll decline and focused on the rise in average hourly earnings and higher participation rate.

Stocks

Investors in U.S. equities didn’t love the report, as a rise in average hourly earnings could lead to higher labor costs for large companies.

Gold

The precious metal is taking a hit since the employment figures increase the likelihood that the Federal Reserve will raise interest rates.

Dollar

With higher wages kicking in, the dollar is continuing the rally that began when President Donald Trump released his new tax proposal.

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