RenMac: Too Soon to Worry about an Inflation Scare
The immediate macro trigger for the recent sell-off in US equity markets was the January employment report, which showed solid jobs growth alongside a pick-up in the pace of average hourly earnings growth from 2.7% to a cycle high of 2.9%. The markets really zeroed in on the uptick in wage growth. First, it is too soon to declare a broad-based increase in wage growth.