NFP: US Job Growth Blasts Off with 254,000 Hires in September, Smashing Consensus Views

America’s employers and their HR teams were really out there seeking talent in September, far outstripping analysts estimates of 145,000 new hires.

• US job growth USNFP not just picked up the pace in September — it shot through the roof. America’s employers tapped 254,000 new hires to join the workforce, smashing and crushing consensus calls for 145,000 new jobs, and way above the figure for August. The monster jobs report caught everyone by surprise after a monthslong hiring slowdown fanned fears of recession and prompted the Federal Reserve to put the pedal to the metal with a super-sized 50 bps cut to interest rates last month.
• The good news was quickly registered by markets, resulting in a cheerful rally across the board. The S&P 500 index surged about 0.7% in the first minutes of the session, the tech-heavy Nasdaq Composite took off by more than 1.1% and the Dow Jones Industrial Average added 0.5% as trading was just starting. The US dollar knocked out forex rivals with a massive pump that lifted its index to 102.70, on pace for a fifth straight day of gains.
• The solid payroll report likely eased the attitude over at the Federal Reserve’s halls. Now central bankers can be more confident in the economy and may decide to go for a casual interest rate cut by a quarter point when they meet next month. Until then, traders will get to see a bunch of other major reports, such as the consumer price index (inflation), which is high up the Fed’s to-do list — policymakers have a dual mandate of achieving maximum employment and keeping inflation at a 2% annual growth rate.