The jobs report was released at the end of last week’s work week. Economists were confident that 258,000 jobs were added during the previous month. But the Labor Department released data showing that more than 500,000 new jobs were added in the U.S. This shows that the economy continues to grow. 

The extremely strong numbers from Friday’s report reduce concerns that the United States will make an announcement. While this optimistic report bodes well for economic growth, it is certainly not about inflation.

At the same time, it dramatically alters the expectations of market participants, who have been focusing their attention on recent GDP reports. At the end of July, the second-quarter GDP estimate was presented. According to the report, GDP volume declined by 0.9%. Prior to that, the BEA had published data showing that GDP volumes declined by 1.6 percent during the first quarter. It is worth remembering that if a country’s economy contracted for two consecutive quarters, that is the classic definition of a recession.

Fear of a disappointing jobs report put pressure on U.S. Treasury yields and the dollar’s decline reversed. The dollar added 0.8%, matching Friday’s decline.