How Wall Street Views the October Jobs Report

The video discusses the current state of the rates market, highlighting adjustments and real rates nearing fair levels. It examines market focus on future trends, noting softness in economic indicators like temporary hiring and retail numbers. The strong growth and hot job market are contrasted with the Fed's likely rate hikes, posing risks to the bond market and risk assets. The global economy shows signs of deceleration, especially in Asia and Europe. The US economy's cyclical component is slowing, but its structural strength remains, with a growing divergence in growth and policies compared to other countries.

Discuss the differences between cyclical and structural components of the US economy as mentioned in the text.

What does the divergent growth story imply for markets and policymaking?