By contrast, on October 4 a new jobs report came out that was red “hot”. Jobs increased by 254,000, soundly beating expectations, and major market indices soared by 1% to 2%. Since the September 6 dip,

The September jobs report and recent economic data suggest the Fed overreacted with its jumbo rate cut. The U.S. economy continues to hum at a stronger clip than many expect, which raises the question of whether the Fed made the right call going with a jumbo rate cut.

The jobs report affirms recession unlikely for now. It also almost guarantees the Fed will reduce rates by a quarter point in November.