Yesterday’s August JOLTS (Job Openings and Labor Turnover Survey) showed a massive decline in job openings. This sent markets ripping higher.

Had to give that a second look? Yes, you read it correctly. Let us explain…

First, here are the highlights from the jobs report:

• Available job positions fell to 10M — down 10% from 11.17M.
• There are now 1.67 job openings for every worker — down from a ratio of 2:1 in July.

So why did the markets jump? The JOLTS report gives a clear picture that the jobs market is slowing — which is good because…

• The Fed said they won’t stop raising rates until inflation is taken care of — which has dragged the markets lower.
• The jobs survey shows that the market is finally cooling — giving the Fed reasons to slow their aggressive rate hikes.

The Fed expects the unemployment rate to rise from August’s 3.7% to 4.4% next year.

Now we’re at a crossroads. The Fed could stop raising rates and risk inflation running higher. Or, the Fed could stay its course and risk unemployment running higher than expected. Your move, Fed.

We’ll get more data when another U.S. jobs report is released this Friday. And even more when the Fed meets Nov. 1-2.