Surprising Reactions to September 2023’s US Nonfarm Payrolls Report
September non-farm payroll's headline print showed that the US economy added 336k jobs against a consensus estimate by economists of only 170k, a spectacular miss which prompted a precipitous market reaction across virtually all asset classes. Equities quickly sold off along with rates, particularly for longer dated bonds. The US dollar quickly gained strength while the yield curve saw a brief steepening with short term yields rising more slowly than longer term yields. This market commentary briefly provides some reasoning behind these market movements and adds our opinion on the outlook for the markets overall in light of this unexpected beat.