Although the headline jobs numbers were disappointing, the government also said that wages rose 4.7% over the past 12 months. That could bode well for consumer spending, even as it may also be raising fears that the Federal Reserve will step up plans to raise rates in order to fight inflation.
Wall Street interpreted that to be a sign that the Fed may raise short-term rates more aggressively this year than originally expected.
However, the mixed jobs numbers may lead the Fed to only gradually raise rates this year. If that’s the case, corporate earnings growth should remain relatively strong, and the economy likely will continue to post solid gains.