U.S. Job Growth Stalls: July Sees Only 114K New Jobs and Unemployment Rate Jumps to 4.3%

Share

U.S. Job Market Sees Significant Slowdown in July

According to the Bureau of Labor Statistics, the U.S. job market experienced a notable decline in growth during July, adding just 114,000 jobs for the month. This figure is considerably lower than the expected 175,000 jobs and marks a decrease from the revised 179,000 jobs reported in June.

Unemployment Rate Rises to 4.3%

The unemployment rate also saw an increase, climbing to 4.3% from 4.1% in June. This rise surpasses forecasts that anticipated the rate to remain stable at 4.1%. The combination of lower job additions and a higher unemployment rate raises concerns about the overall health of the U.S. economy.

Market Reactions: Bitcoin and Traditional Assets

In response to the disappointing job numbers, the price of Bitcoin (BTC) remained relatively stable, trading at around $64,500, showing little change from the previous day. However, traditional markets reacted more dramatically:

  • The 10-year Treasury yield fell by 15 basis points to 3.83%, while the two-year yield dropped 23 basis points to 3.93%, marking their lowest levels in over a year.
  • Nasdaq futures decreased by 2.3%, and the S&P 500 fell by 1.6%.

Currency and Commodity Shifts

The U.S. dollar experienced a decline of 0.6%, while gold prices increased by 1.3%, reaching $2,513 per ounce. Such fluctuations highlight the market’s uncertainty following the labor statistics release.

Federal Reserve Rate Cut Expectations Increase

Traders had already anticipated a 25 basis point rate cut by the Federal Reserve in September, but the recent job data has significantly increased the likelihood of a more substantial cut. According to the CME FedWatch tool, there is now a 70% chance of a 50 basis point cut in September, up from only 22% the day prior. Additionally, speculations for a total of 125 basis points in rate cuts by the end of the year have begun to circulate, compared to previous expectations of just 75 basis points for 2024.

Conclusion

The July job report indicates a slowing labor market in the U.S., prompting significant adjustments in both traditional and cryptocurrency markets. As investors await further insights from the Federal Reserve, all eyes will be on upcoming economic indicators and their potential impact on job growth, inflation, and interest rates.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *