Stocks sold off sharply after the Bureau of Labor Statistics reported the strongest new hiring numbers in nine months on Jobs Friday. An uptick in consumer inflation expectations to their highest level since May provided an additional reason for investors to trim their rate-cut expectations.
"The surprisingly strong jobs report certainly isn't going to make the Fed less hawkish," says Morgan Stanley Wealth Management Chief Economic Strategist Ellen Zentner. "All eyes will now turn to next week's inflation data, but even a downside surprise in those numbers probably won't be enough to get the Fed to cut rates any time soon."
