The September jobs report and recent economic data suggest the Fed overreacted with its jumbo rate cut. The U.S. economy continues to hum at a stronger clip than many expect, which raises the question of whether the Fed made the right call going with a jumbo rate cut.

By contrast, on October 4 a new jobs report came out that was red “hot”. Jobs increased by 254,000, soundly beating expectations, and major market indices soared by 1% to 2%. Since the September 6 dip,

"This month, the labor market looks stronger than we previously thought," Dan North, senior economist at Allianz Trade North America said after the Labor Department's exceptionally strong September nonfarm payrolls print.