US Hiring Blew Past Expectations

The latest jobs figures came in unexpectedly strong for May. Employers added 172,000 jobs last month, marking a third straight month of solid gains and easily beating the 80,000 increase economists surveyed by the Wall Street Journal had anticipated. The unemployment rate held at 4.3%, matching forecasts and underscoring a labor market that appears to be regaining its footing after a softer stretch last fall and winter. Stock futures fell in the wake of the report, however, with investors betting that the strong numbers make it likelier that the Federal Reserve will raise interest rates before the year is out, per CNBC. The benchmark S&P 500 was down 0.6% ahead of the open.

The job gains came despite a fourth month of war in Iran and higher energy costs squeezing businesses. ADP data earlier in the week pointed to health care and education as the main drivers of new hiring. On the ground, the picture is mixed: Consumer sentiment has sunk to record lows amid worries over inflation and gas prices, and retailers such as Dollar General report shoppers cutting back on basics, even as Macy's says customers are still springing for pricier items like leather jackets. Corporate America, meanwhile, continues to post strong results, with S&P 500 companies on track for roughly 29% growth in first-quarter earnings per share.