Private payrolls in the U.S. climbed by a solid 265,000 in October, topping expectations and signaling that the labor market remains remarkably resilient despite higher borrowing costs. The biggest job gains came from the healthcare and construction sectors, while manufacturing and retail hiring held steady. Economists had expected a slowdown as companies adjusted to weaker demand and elevated wages, but the data told a different story one of ongoing economic stamina. Investors, however, were divided: while strong employment supports spending and growth, it also keeps the Federal Reserve cautious about cutting interest rates too soon.

The upbeat labor data injected some optimism into Wall Street, helping offset jitters from trade and earnings headlines. It also arrived at a critical time when investors are trying to gauge whether the U.S. economy can achieve a “soft landing” slowing inflation without tipping into recession. Still, with job creation outpacing expectations for months now, some analysts worry it might add pressure on inflation later in the year. For now, though, the report keeps the “good news is good news” narrative alive at least until the next Fed meeting.