Private sector employers last month hired workers at the fastest pace since July amidst broad expansion throughout industries. The 63k headline number exceeded the expected 50k and January\u2019s 11k as the education\/health services, construction and information sectors boosted rosters by 58k, 19k and 11k. Finance, mining, leisure\/hospitality and other services also contributed, albeit they all came in under 10k. Conversely, professional\/business services, manufacturing and trade\/transportation\/utilities trimmed payrolls by 30k, 5k and 1k, respectively. Small and large businesses, meanwhile, added 60k and 10k, but medium-sized firms sustaining between 50 and 499 laborers lost 7k. Compensation trends were relatively steady. The median year-over-year (y\/y) changes across job stayers and leavers were 4.5% and 6.3%, respectively, unchanged on the former and lighter than the 6.4% previously reported for the latter.<\/p>\n\n\n\n Past performance is not indicative of future results.<\/p>\n\n\n\n <\/p>\n\n\n\n ISM Confirms Hiring Reacceleration<\/strong><\/p>\n\n\n\n A separate report from the Institute for Supply Management (ISM) on Wednesday confirmed the acceleration in hiring, as roster expansions were supported by buoyant consumer demand. Indeed, the ISM\u2019s Purchasing Managers\u2019 Index for services hit a 41-month high of 56.1, above the projected 53.5 and January\u2019s 53.8. Business activity, new orders, exports, backlogs and employment all ramped up to scores of 59.9, 58.6, 57.2, 55.9 and 51.8. Price pressures decelerated, meanwhile, from 66.6 to 63.4 but nonetheless remained elevated.<\/strong><\/p>\n\n\n\n <\/p>\n\n\n\n Past performance is not indicative of future results.<\/p>\n\n\n\n <\/p>\n\n\n\n Trump Put Supported by Midterms?<\/strong><\/p>\n\n\n\n With bouts of volatility followed by intense dip buying in equities this week, the S&P 500 is now flat for March despite the risk of an inflationary episode stemming from the Middle East conflict. President Trump and his cabinet have been active in the media seeking to quell fears regarding a potentially extended war and a shortage of energy supplies, which has driven sharp intrasession rebounds in stocks for three consecutive days. Meanwhile, the GOP is losing ground in the midterm elections, according to the Interactive Brokers prediction market, with odds rising that the Republicans may even give up their majority in the Senate, a potential outcome that had a much lower likelihood at the beginning of the year. The development, while negative for the party in control, is positive for bullish investors, as the Trump put lifts to a higher strike in an attempt to please Wall Street and voters with the dual goal of offsetting both declining approval ratings and weakening probabilities for Republican victories at the ballots this November.<\/p>\n\n\n\n International Roundup<\/strong><\/p>\n\n\n\n South Korea Equities Tank on and Energy Fears and Excessive Leverage<\/strong><\/p>\n\n\n\n South Korea\u2019s domestic equity benchmark, the Kospi Index, dropped roughly 12% this morning following Tuesday 7.2% free fall as margin calls intensified a selloff triggered by the Middle East war. The abrupt correction occurred after South Korea stocks climbed more than 50% in recent months with investors clamoring for semiconductor manufactures that are positioned to benefit from billions of dollars being allocated to artificial intelligence. The Middle East violence caused equities to fall worldwide because investors fear that a disruption in oil production and shipping will cause the commodity\u2019s prices to climb and trigger higher inflation. South Korea\u2019s heavy dependence on energy imports has made the Asian peninsula and its manufacturers particularly susceptible to these fears. Additionally, record levels of leverage have intensified the selloff. Investors are now assessing if the South Korean government will intervene. <\/p>\n\n\n\n But Industrial Output Exceeds Year-Ago Period<\/strong><\/p>\n\n\n\n South Korea\u2019s industrial production in January declined relative to the preceding month, yet it was still substantially stronger than in the year-ago period, according to the Ministry of Data and Statistics. Output as measured by the Index of All Industry Production slipped 1.3% month over month (m\/m) but was 4.1% higher than during the year-ago period. Construction was the most significant contributor to the m\/m drop while services activity was roughly unchanged. The retail and wholesale sectors also contracted, offsetting encouraging results for software development and computer programming.<\/p>\n\n\n\n While Retail Sales Produce Mixed Results<\/strong><\/p>\n\n\n\n Consumers in South Korea dished out 2.3% more at cash registers in January compared to the previous month, according to the Retail Sales Index. In December, spending was up only 0.6% m\/m. Despite the m\/m ascent, the January volume of transactions was only 0.1% higher than during the first month of 2025.<\/p>\n\n\n\n China PMIs Depicted Mixed Results<\/strong><\/p>\n\n\n\n The China Federation of Logistics & Purchasing and the country\u2019s government this morning published separate reports depicting ongoing economic contraction last month, but a revised S&P report showed that activity in the world\u2019s second-largest economy is expanding at a solid pace. The gauges often produce different results, in part due to variations in the weighting of trade activity.<\/p>\n\n\n\n The official Chinese Composite PMI from the National Bureau of Statistics of China pointed to the country\u2019s economic contraction accelerating with a score of 49.5 after January\u2019s 49.8. A score of 50 is the contraction-expansion threshold.<\/p>\n\n\n\n The Federation\u2019s indices confirmed ongoing weakness with the Manufacturing PMI and Non-Manufacturing PMI at 49 and 49.5. Economists anticipated that the Manufacturing PMI would fall to 49.1 following January\u2019s 49.3 print. For the non-manufacturing sector, the gauge climbed modestly from 49.4 to 49.5 but missed the economist forecast of 49.8.<\/p>\n\n\n\n S&P Global\u2019s RatingDog China reports were more encouraging with the manufacturing version climbing from 50.3 in January to 52.1, the sharpest expansion in more than five years. New orders, including exports, improved considerably. The RatingDog general services PMI depicted a similar pattern with a score of 56.7, a considerable jump from 52.3. It was the fastest expansion in nearly three years.<\/p>\n\n\n\n Australia GDP Growth Accelerates<\/strong><\/p>\n\n\n\n Australia\u2019s economy expanded across industry sectors resulting in quarter-over-quarter GPD growth of 0.8% during the final three months of 2025. The result exceeded the economist consensus estimate for a 0.7% expansion and it outpaced the 0.5% gain in the third quarter, according to the Australian Bureau of Statistics. On a y\/y\/ basis, the economy expanded 2.6% following the third quarter\u2019s 2.1% advance. Economists anticipated that the country\u2019s economy would be 2.2% larger relative to the year-ago period. Demand from both private and public sectors picked up with each category contributing 0.3 percentage points to the headline. Companies also rebuilt inventories, providing an additional economic tailwind. Net trade, however, detracted from results with imports increasing at a faster rate than exports. <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" Animal spirits made a Wall Street comeback on Wednesday as developments from Washington and Tehran raised the chances of peace occurring sooner rather than later. The Trump administration sought to quell energy supply nerves as Treasury Secretary Bessent signaled that the US government is ready to protect shipments and ensure that oil is readily available globally.<\/p>\n","protected":false},"author":903,"featured_media":211825,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146,147,12,148,7],"tags":[291,314,383],"contributors-categories":[370],"class_list":{"0":"post-211827","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-macro","8":"category-north-america","9":"category-securities","10":"category-text-articles","11":"category-traders-insight","12":"tag-macro","13":"tag-market-outlook","14":"tag-stock-market","15":"contributors-categories-ibkr-macroeconomics"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n![\"US](\"https:\/\/www.interactivebrokers.eu\/campus\/wp-content\/uploads\/sites\/3\/2026\/03\/image-4.png\")
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