Wall Street Sees Blowout Jobs Data as 'Wrong Report at the Wrong Time'

The latest US jobs report doused nascent optimism that the American economy was weakening enough to warrant a go-slower approach by the Federal Reserve in its battle against inflation.

Hiring topped estimates and wage growth accelerated more than expected last month, upending expectations that had built across Wall Street in recent weeks. Futures on the S&P 500 tumbled, the dollar surged and Treasury yields spiked higher.

“Earnings double expectations is a problem,” Bryce Doty, senior vice president at Sit Investment Associates, said.

Here’s what Wall Street was saying:

Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors LLC:

Seems like it should be a bad print for markets. The headline figure was strong and there are clearly persistent wage pressures, but the internals and leading components were pretty weak. That suggests that the Fed can’t really ease up too much, but growth continues to deteriorate.