Jobs Numbers Point to Wall Street Temper Tantrum

Even before markets closed on Monday, some on Wall Street were already saying the market bloodbath was an overreaction to slowing US job growth. On Tuesday, a small bounce lent some credence to that thesis while yesterday’s market retreat did not. But on Thursday, shiny new employment data appeared, giving a clear sign that investors everywhere basically had a temper tantrum for no good reason. Initial applications for US unemployment benefits fell last week by the most in almost a year, helped by fewer applications in states such as Michigan, Missouri and Texas. The decline apparently helped reassure flustered markets that the US workforce isn’t disintegrating so much as reverting to its pre-pandemic trend, which—for everyone playing at home—is what the Federal Reserve has been shooting for in achieving a soft landing.

Stocks staged a big rebound as sheepish investors wiped away tears and shuffled back to their desks to buy. All major groups in the S&P 500 advanced, with the gauge notching its biggest rally since November 2022. As the angst subsided, Treasuries dropped across the curve—with the selloff led by shorter maturities. Here’s your markets wrap.