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The United States economy added 336,000 new jobs in September, shocking investors who were expecting a hiring slowdown. Economists were predicting the economy would add just 170,000 jobs, down from the 227,000 jobs created in August.
Stocks opened the day lower on the news, as investors feared the robust job numbers would increase the likelihood of another interest rate hike from the Federal Reserve.
The Dow Jones Industrial Average was down 26 points in early trading after being down 150 points. The S&P 500 was also down by 8 points, while the Nasdaq was up 2 points.
"Slowdown? What slowdown? The U.S. labor market continues to exhibit amazing strength, with the number of new jobs created last month nearly twice as large as expected," George Mateyo, chief investment officer at Key Private Bank, said according to CNBC.
Chris Rupkey, chief economist at FwdBonds, noted that while companies were hiring, wage growth was slower. However, he said the numbers indicate the economy is not heading for a recession.
"Jobs jumped 336K in September with an incredible 119K of upward revisions to July and August. There is no recession. Bet on it. The stock market is. Stocks are tanking as they are afraid interest rates will have to stay higher for longer with Fed officials maybe needing to kick rates up another notch," he said, according to CNN.