Non-farm payroll data "bad but with silver lining," US stock futures rise, but not enough to prompt Fed action this month

Odaily According to reports, US stock index futures extended gains after December job growth came in slightly below expectations. US non-farm payrolls increased by 50,000 last month, lower than the market consensus estimate of 73,000. The unemployment rate fell to 4.4% from a downwardly revised 4.5% in November. Art Hogan, Chief Market Strategist at B.Riley Wealth, noted in a report: "The key takeaway from today's report is that there is more good news than bad in the first on-time jobs report in three months." The data also alleviates pressure on the Federal Reserve to cut rates again later this month, although markets still anticipate a rate cut later this year.

Jerry Tempelman, Vice President of Fixed Income Research at American Shared Capital Management, stated that due to data disruptions caused by the prolonged government shutdown, today's jobs report provides economists with the most insightful glimpse into the labor market in three months. We are watching the elevated unemployment rate—which reached a four-year high in November's jobs report—and how it might influence the Fed's meeting at the end of the month. The weak labor market backdrop supports the rate cut decision expected by late 2025 but does not raise concerns significant enough to justify further rate cuts this month. (Jin10)