U.S. unexpectedly shed 23,000 jobs in July, putting Fed rate hikes in question
The U.S. economy unexpectedly lost 23,000 jobs in July, falling significantly short of market expectations. This data has led to a decrease in market confidence regarding potential Federal Reserve interest rate hikes in September.
Why it matters
The report signals potential economic cooling, influencing investor sentiment across traditional markets and the cryptocurrency sector.
According to the government’s Nonfarm Payrolls Report released Friday morning, the U.S. lost 23,000 jobs last month. That was far below the consensus expectation of a gain of 80,000 jobs, and down from June’s addition of 20,000 (revised down from an originally reported 57,000).
May’s job gains were also revised sizably lower — down to 63,000 from an originally reported 129,000.
The last negative jobs print was in February, when the U.S. lost 156,000 jobs.
The unemployment rate dipped to 4.1%, compared with the expected 4.2% and June’s 4.2%.
Market reaction is swift, with U.S. stock index futures gaining and interest rates dipping. Also moving higher are precious metals, with gold now up 3% for the day and silver up just shy of 6%. There’s little action in crypto, with bitcoin remaining modestly higher on the session at $65,000.
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