The North American job market is still strong

The strong US job report fueled bets that the US central bank will have room for further increasing the interest rates without cracking the economy. S&P 500 and Nasdaq added 1.13% and 2.09% and Canada’s S&P/TSX Composite added 0.5% during the week.

US employers added 263,000 jobs in November, while the unemployment rate held at 3.7%. Having such strong economic data in presence of record-high inflation and 350 basis points of rate hikes throughout the year is amazing for markets and economists. The report came after the Fed Chair"s notes on Wednesday that leaned toward the idea of a slower rate hike in December (probably half a percent), adding to the hope of market bulls calling an end to the stock market correction.

The higher rates pressured all asset classes from equities, bonds, commodities like gold and oil, and even the crypto market. The WTI oil prices meanwhile rebounded to over 80 a barrel while US and EU are taking forward the 60 price cap for Russian oil. The move was introduced by the US to respond Russian invasion of Ukraine and let the oil flow to the EU at a lower price while capping Moscow’s revenue from oil.