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Opinion
Mohamed A. El-Erian

Can Wall Street and Main Street Stay Aligned?

Markets usually plunge when the news is good for U.S. workers. Friday's jobs report sent stocks soaring instead. What gives?
Good news all around.

Good news all around.

Photographer: John Moore/Getty Images

Friday turned out to be a good day for both Main Street and Wall Street. The impressively strong U.S. monthly jobs report, instead of leading to a selloff in stocks, contributed to a record high for equity markets by the end of the day. If this new alignment persists, it could be quite consequential in several different ways.

At first, it didn’t look as if it would turn out that way. When the jobs numbers came out, U.S. stock futures fell reflecting the knee-jerk reaction to sell equities in anticipation of shifts in Federal Reserve policy. But the markets regained their composure, recouping the losses and more.