tl;dr
The U.S. job market exceeded expectations with the addition of 272,000 jobs in May, leading to a higher unemployment rate of 4.0%. This unexpected strength is likely to dampen expectations of imminent Fed rate cuts. In response, Bitcoin, stock, and bond markets turned lower. Bloomberg's chief econom...
Far stronger than expected U.S. job adds likely to dampen expectations of imminent Fed rate cuts
The U.S. job market exceeded expectations with the addition of 272,000 jobs in May, leading to a higher unemployment rate of 4.0%. This unexpected strength is likely to dampen expectations of imminent Fed rate cuts. In response, Bitcoin, stock, and bond markets turned lower. Bloomberg's chief economist pointed out underlying weaknesses in the economy despite the strong headline numbers. The 10-year Treasury yield spiked to 4.42%, U.S. stock index futures are down, the U.S. dollar surged 0.5%, and gold tumbled more than 2%. Bitcoin, stock, and bond markets turn lower in response to fresh data
The employment market in the U.S. remained strong in May with the addition of 272,000 jobs, far past estimates for just 185,000. In response, Bitcoin, stock, and bond markets turned lower. The 10-year Treasury yield has shot higher by 12 basis points to 4.42%, U.S. stock index futures are pointing to a lower open, the U.S. dollar has surged 0.5%, and gold has tumbled more than 2%. Bloomberg's chief economist suggests headline number masking underlying weakness in the economy
Bloomberg's chief economist suggested the headline number is masking the underlying weakness in the economy. She believes that the rise in the unemployment rate is the more important indicator of the reality of the employment situation. She noted that the model for estimating business births and deaths, which added 231,000 jobs to the nonfarm-payrolls print in May, is lagging the reality of surging establishment closures and falling business formation. She thinks the underlying pace of current job gains is likely less than 100,000 per month. The article summary is based on information provided by CoinDesk and contains insights into the impact of unexpected job data on various financial markets.