Wall Street ended lower after employment data showed U.S. labor demand remained strong, potentially giving the Federal Reserve reason to stay aggressive in its fight against inflation
U.S. private payrolls increase in September - ADPEnergy stocks jump as OPEC+ agrees to oil output cutsOct 5 - Wall Street stocks closed lower on Wednesday, unable to sustain a late-day surge, after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer.
Fed officials have insisted on aggressive rate tightening to battle inflation, a message the market has feared would lead to a hard landing and likely recession. However, investors also sought bargains in a market that appears oversold. The forward price-to-earnings ratio is at 15.9, close to its historic mean, down from around 22 before the market's big slide this year."By battling back, to me that is a favorable indicator that this rally could have legs," said Sam Stovall, chief investment strategist at CFRA Research in New York.
"It too confirms that investors believe, traders believe, that there's still more to go in this rally," he said.U.S. private employers stepped up hiring in September, the ADP National Employment report on Wednesday showed, suggesting rising rates and tighter financial conditions have yet to curb labor demand as the Fed battles high inflation.
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