Job data from December has bolstered the U.S. stock market after a downward trend started off the new year. The data suggests that employment, job growth, and wages had a solid December, despite the tumultuous stock market last month. The market saw a 1% increase, and bond yields rose after a steep fall off.
While the unemployment rate did go up from the 50 year low of 3.7 percent to 3.9 percent, experts say this is not a bad sign for the economy. Some believe that the slight uptick in unemployment may be a sign of people hunting for more lucrative positions, so overall it’s still positive. Employers also hired the highest number of workers in the past 10 months in December. Monthly wages went up in December by 0.4 percent, more than expected. The sectors that saw the most growth were healthcare, hospitality, and construction.
The good news points to the Federal Reserve’s predictions of a strong economy, and their forecasted interest rate hikes fall in line with the data. Another factor contributing to the solid stock market on Friday were the announcements by China to continue trade talks in Washington. This boosted not only the U.S., but the global economy as a whole.