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 Market Mysteries of the week

  Why would the stock market surge to record highs if the unemployment report was surprisingly worse than expected? 

Answer: The stock market runs on expectations. Investors observe what’s happening in the economy and decide whether they’re optimistic or pessimistic on the future. Normally, bad news just means bad news. If fewer people are working, companies can’t operate as well and they make less profit. However, these are not normal times. Right now, the government is evaluating whether or not the economy needs additional support and stimulus. Lately, it has seemed like the economy has been making a full recovery. Different economic indicators are snapping back so quickly that some investors are worried about negative side effects of a recovery that happens too fast. This shockingly-bad employment report might calm some of those worries and make people hopeful for more economic stimulus. That turns the near-term bad news into optimism. Terms: Unemployment Rate - The percent of people in the labor force that are not currently employedLabor Force - The population of working-age people that are actively working or looking for workStimulus - Government spending programs designed to boost the economy (think business programs or those checks paid to citizens) 

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