WASHINGTON—Stronger-than-expected job gains pushed back fears of a recession, sending the stock market to a record high.
U.S. job growth surged in September, with employers adding 250,000 jobs, well above the 150,000 that was predicted.
The Labor Department report indicates the U.S. economy may be headed for a soft landing. The numbers could reduce the Fed’s expected year-end rate cut to 25 BPs instead of 50, analysts stated.
"Employers accelerated hiring in September, surpassing consensus expectations and easing concerns about weakness in the labor market after the summer slowdown,” said America's Credit Unions Senior Economist Dawit Kebede. “Job gains were spread across several industries relative to the prior two months. This report strengthens the likelihood of a soft landing for the economy as the Federal Reserve begins loosening monetary policy and inflation trends toward its target."