So what is the Federal Reserve going to do now that the October job reports are out and they came out much lower than what was expected? Is the Federal Reserve going to raise interest rates and cause the market to drop? Or are they finally going to step back and actually pause or potentially cut interest rates and allow the market to continue to rise? Let's go ahead and break this down: I Really hope that you guys learned something new, and if you do, please consider dropping a thumbs up and subscribing if you feel like we earned it. Overall NASDAQ Market rose 1.17% on the day, but that's the smallest day, almost in comparison to what we've experienced all week. Overall: NASDAQ Market from lows to high gained about 6% on the given week, and that was after selling off for about two weeks. So what is causing this shift of Market sentiment, right? Well, earning reports are part of it.

But again, the big Focus today were the job reports: non-farm private payrolls. Non-farm payrolls came in much lower than what was expected. And I'm going to share with you something that not enough people are talking about on why they came came in much lower than what was expected. Uh.

And also the unemployment rate came in at 3.9% when the expectation was 3.8% So unemployment is going up, which means that the labor market is cooling. Remember the Federal Reserve Uh, the Federal Reserve wants the labor market to cool off because if it is slowing down, then that means that inflation shouldn't be rising as quickly as it can be, right? if the economy was red hot the labor market. you know, if everyone was getting a job, then that can cause inflation to go up. And at that point then the Federal Reserve can justify raising interest rates more to slow down the economy.

But because it's cooling, then this potentially supports the case that they don't have to raise interest rates anymore, right? The Federal Reserve has a big Focus right now of being hawkish, but with a pause right? because they've paused for the previous two uh, Fomc rate decisions and they're potentially expected according to this Fed rate monitor Tool uh to pause in the month of December as well. There's a 95.2% probability that they're going to pause once again. But let's go ahead and talk about why we saw such a significant ific drop in the payrolls, right? You guys can see that the expectation was 175k, but we came in at 150 and then the expectation of non-farm private payrolls was 143k. But we came in at 99k, right? Well, how many of you guys knew that in the month of October that there was an auto worker strike, right? Experts say that the headline number was distorted by the auto worker strike, where if it were not for the labor actions hiring would have grown by 180,000 last month.

That means if that were to be true, we would have been higher than what was expected, causing the market to sell off, but because of those distorted numbers due to the auto worker strike, we came in much lower cause the market to go up because it does support the case that wow, labor markets are cooling off So when it comes down to it, if data continues to come up like this, where we are seeing not only just our economy but also the labor market, right If unemployment rate continues to go up and the economy continues to slow down, the Federal Reserve has no other choice but to slow down, to continue to pause and to potentially cut rates going into 2024. But if this month's report is a fluke because of what happened in October due to those Auto Workers strike, does that mean that we're going to see a much larger jump in the month of December and in January as we begin to capture back all those new jobs, something to think about right? That is kind ofely unknown variable right now that I'm going to try to continue to pay attention to as much as possible possible and I want to remind you this article does a great job breaking it down right? Uh, One thing that I quickly want to show you is let's see if I can quickly find it. So it says that there were a total of two to three more times that the um, when it comes down to the job market or labor market uh reports are going to come out uh before the Federal Reserve meets up once again. So the slowdown in hiring has given the Feds rates setting committee the Fomc right evidence that the labor market is cooling.

Experts say that in turn gives the FMC over cover to once again stand Pat on interest rates. so again, really justifying the the idea of pausing rate hikes. But one thing that again uh, we want to continue to talk about is that there are going to be at least two more of these kind of job reports leading up to the next Fomc rate decision that's going to be on December 13th if I'm not mistaken. Yeah, December 13th is the next time that they're going to be meeting and coming up with a potential according to this Fed rate monitor tool or a potential hike.

So again, something that we're going to continue to follow with on this channel and I'll make sure that I keep you guys up to date. But as of right now because of those job reports and because of that economic data it is showing that only our Uh it is showing that our labor market and our overall economy is slowing down which justifies the decision for the Federal Reserve to potentially to continue to pause rates. But remember if that market sentiment begins to change, if the data that begins to be reported begins to be more redh hot and less of slowing down then we can begin to see more selling pressure because again then that Dynamic and that overall Market sentiment begins to change as the Federal Reserve can then justify being more hackage. So remember we're trying to see all of these economic reports not Through The Eyes of an individual but Through The Eyes of the Federal Reserve on what would incourage them to raise interest rates or to continue to pause.

According to the last Fomc meeting own pal sets, the idea of cutting rates is not even in really the conversation during these meetings. so I'll make sure that I keep you guys up to date I Wish you guys an amazing Friday Wish you guys an amazing weekend I Hope that it earned you your thumbs up! Don't forget to subscribe and friendly reminder I Trade Live Every Morning! I'm going to be trading live right on Monday at Market open I'd Love to see you there and that's the second link in the description down below. We're running our biggest sale for the weekend. It's $175 off.

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