The Market Reaction of a 10.2% Unemployment Rate
With the unemployment rate now at 10.2%, different sectors of the market are reacting quickly.
The general equity market lost ground and after looking at a flat to modestly higher open earlier, futures not point to a significant decline.
Gold, silver, and some other metals are pushing higher as the US Dollar comes down. Gold is now pushing $1,100/ounce with silver at $17.5/ounce. The Dollar is under pressure due to the worse than expected report.
Oil is heading lower as investors feel unemployment will continue to act as a headwind to a robust economy. It is trading down $1.18 to $78.6/barell.
Long Treasuries are heading higher, with shorter treasuries ticking down. This is a result of investors perceiving a longer period of time before the FED raises interest rates. The implied chance of a rate hike in April decreased from the mid 80s to 68%.
