© Reuters. FILE PHOTO: A street sign for Wall Street hangs in front of the New York Stock Exchange May 8, 2013. REUTERS/Lucas Jackson/File Photo
By Amruta Khandekar and Shristi Achar A
(Reuters) -Wall Street clawed back losses on Friday after jobs data pointing to a resilient labor market fueled optimism about a soft landing for the economy, with a rise in U.S. consumer sentiment also adding to the upbeat mood.
The Labor Department’s report showed nonfarm payrolls increased by 199,000 jobs in November, compared with an estimated increase of 180,000.
The unemployment rate slipped to 3.7%, while average earnings edged up to 0.4% on a monthly basis, compared with forecasts of 0.3% growth.
Investors pared back bets that the Federal Reserve will cut interest rates in March after the report, but they are still pricing in the likelihood that the central bank is done raising rates.
“We didn’t see an outsized increase in average hourly earnings, which is the inflation piece of this report. We saw a significant number of jobs being created,” said Art Hogan, chief market strategist at B Riley Wealth in New York.
“This is the definition of a soft landing where inflation is heading…
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