Miners gained further momentum Friday after the government the U.S. economy added 242,000 nonfarm payrolls in February, compared to expectations of a 190,000 increase. The labor market is signaling continued U.S. economic growth, assuaging fears of a potential recession.
“Whilst a stronger than expected number indicating a very healthy job market is unlikely to spark the Fed into action any time soon, traders will consider this as an indication that the U.S. economy is likely to remain healthy and continues to expand in 2016,” Markus Huber, trader at City of London Markets, told Reuters.
The markets also don’t anticipate the Federal Reserve to change its rate schedule in the March meeting.
“The Fed would wait to see the economy develop a bit further, and get more convincing evidence that inflation has turned,” Ethan Harris, co-head of global economics research at Bank of America Merrill Lynch, told CNBC, predicting that the strong jobs report won’t change anything and that the Fed will likely push off rate hikes until June.
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Max Chen contributed to this article.