As of 2:00 p.m. ET, The other major indexes were also up on the news with the S&P 500 gaining over 10 points and the Nasdaq Composite rose over 20 points as of 11:00 a.m. ET. Names like Intel, Boeing and Caterpillar filled the leaderboard for the Dow with Wynn Resorts topping the S&P and Nasdaq.
In addition to the private payrolls data, the U.S. services sector grew last month at its fastest pace based on data released by the Institute for Supply Management. The ISM non-manufacturing index ticked up to 61.6, which represents its highest level since 2008, beating out a poll of economists expecting the index to show 58 for the month of September.
Just last week, the Fed addressed the rapid growth of the economy, hiking the federal funds rate by 25 basis points to 2.25. With more incoming data suggesting further economic strength, the prospects for a rate hike in December become more evident.
“The U.S. economy is strong, there’s just no other way to frame it,” said Nathan Sheets, chief economist at PGIM Fixed Income.
“The economy is strong, growth is strong, inflation is gradually moving up as the Fed projects. And the reality is the U.S. Treasury will be doing a lot of issuing over the next few years, which all put upward pressure on rates in the near term,” Sheets added.
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