This is Why Markets are Shrugging at Jobs Data

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Trader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Feb. 24, 2020. Stocks are opening sharply lower on Wall Street, pushing the Dow Jones Industrial Average down more than 700 points, as virus cases spread beyond China, threatening to disrupt the global economy. (AP Photo/Richard Drew)

Markets hit all-time highs this week, despite a pullback in December job numbers.

According to CNBC, “The unemployment rate was 6.7%, compared to the 6.8% estimate. Since a recovery that began in May, the economy had recovered 12.3 million of the jobs lost. The biggest hit came in the hospitality industry, where hotels, restaurants and bars suffered under the yoke of restrictions that limited travel, dining and drinking.”

However, despite the news, markets shrugged it off.  All on anticipation it could help make the case for more stimulus from Congress. The numbers are also being viewed as temporary with vaccines being distributed around the country.

“In some ways, bad news is good news, because it increases the probability for more stimulus,” said Michael Arone, chief investment strategist for US SPDR Business, as quoted by CNBC. “Investors have convinced themselves this week that given what’s happened in Georgia, given the weakness in the economic data, that more help is on the way. We’re going to get more fiscal help, and it’s likely to happen pretty soon.”

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