May 3 Reuters U.S. job growth slowed more than expected in April and annual wage gains cooled, signs of a looser labor market which are good news for markets and the Federal Reserve that will likely require more such signals before pivoting from a higher for longer policy.

Nonfarm payrolls increased by 175,000 jobs last month, the Labor Department said in its employment report on Friday. March was revised up to show payrolls rising by 315,000 jobs instead of 303,000. Economists polled by Reuters had forecast payrolls advancing by 243,000. The unemployment rate rose to 3.9 from 3.8. Wages increased 3.9 in the 12 months through April after rising 4.1 in March.

MARKET REACTION

STOCKS SP 500 emini futures added to gains and were up 1.1 pointing to a strong open on Wall StreetBONDS The U.S. Treasury 10year yield fell and was last at 4.50; Twoyear yields fell to 4.772FOREX The dollar index retreated 0.61, while the euro was up 0.62

COMMENTS

TIMOTHY CHUBB, CHIEF INVESTMENT OFFICER, GIRARD, WEST CHESTER, PENNSYLVANIA

Market response is a sigh of relief. It was important to see wage growth moderate and not accelerate especially in the context of the inflation story.

It39;s too soon to price in more rate cuts. One number doesn39;t make a trend. Overall, the Fed is getting the evidence it needs.

A lot of job growth was driven by immigration recently which is good for wage growth coming down as a lot of these jobs are on the lower end of wage growth. This is a continuation of…