Stocks moved firmly higher after the latest monthly jobs report showed wage growth had eased, tamping down concerns among investors that bigger paychecks could lead to a rise in inflation and force the Federal Reserve to hasten its pace of short-term interest rates to tame it.
“It’s a fantastic report for the economy,” said Ed Keon, a portfolio manager with QMA. “And the tick down in wage growth means the fears some people had about inflation may be too soon.”
More broadly, the February jobs report gave investors a rosy view of the economy.
“One could not obtain a better report from the investor porch,” said David Kotok, chief investment officer at Cumberland Advisors. “Stocks love it because it’s affirming gradualism and takes the pressure off the Fed.”
Read the full article here: WSJ.com