Today the stock market was down a lot initially, with the Dow being down over 700 points early in the day. However, the the Department of Labor released the data for February unemployment this morning and it was very good news.
A spectacular 273,000 private sector jobs were created for the month, much more than the 175,000 economists expected, This pushed the overall unemployment rate down to 3.5%, the lowest this rate has been in over 50 years.
Also, the two previous month’s job’s created was revised up by a total of 85,000.
This reflects an economy that is running on all cylinders in February. The employment report helped the market, but did not erase the loss as of the writing of this post. At this time the Dow is still down a good bit, but not merely as much as before the unemployment report. Investors feel better about the economy, but worry what the long term impact of the coronavirus.
At some point, we expect a vaccine to be made and the virus to be under control. When this happens, if the economy is still growing and producing jobs as it is now, one would expect the market to come roaring back.
Time will tell.