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"The U.S. Department of Labor released the September non-farm payroll report on Friday (6th), showing a significant increase in employment with an addition of 336,000 jobs. This figure was double the originally estimated 170,000 jobs and far exceeded analyst expectations (August's figure was 187,000 jobs).
These numbers have defied expectations of an economic slowdown due to concerns about high interest rates, resumption of student loan repayments, and rising oil prices. The Labor Department stated that job growth was concentrated in high-contact service sectors, with employment in U.S. restaurants and bars returning to pre-pandemic levels last month. Increased demand in hospitals, hotels, and education also contributed to the employment gains.
Possibility of Fed Rate Hike Increase
The market is concerned that the robust growth in the job market might disrupt the Federal Reserve's efforts to cool down an overheating economy, potentially leading to higher and longer-lasting interest rates. According to Fedwatch data, the probability of the November FOMC meeting maintaining the current interest rate range of 5.25% to 5.50% has dropped to 72.9%, while the probability of raising it to 5.50% to 5.75% has risen to 27.1%.
Federal Reserve officials are closely monitoring the release of September Consumer Price Index (CPI), Producer Price Index (PPI), and other data next week.
U.S. Stock Market Rebounds
Although there is an increased prediction of the Federal Reserve raising rates again by year-end, causing a temporary dip at the opening of the U.S. stock market, it quickly regained stability, and the four major indices closed higher.
- Dow Jones Industrial Average rose by 288.01 points (0.87%) to close at 33,407.58 points.
- Nasdaq Composite Index increased by 211.51 points (1.6%) to close at 13,431.34 points.
- S&P 500 Index gained 50.31 points (1.18%) to close at 4,308.5 points.
- Philadelphia Semiconductor Index increased by 68.24 points (2.0%) to close at 3,475.21 points.
Cryptocurrency Market Reaction to the Dip and Recovery
The cryptocurrency market experienced more significant volatility after the news. Bitcoin briefly dropped to nearly $27,100 when the data was released but quickly rebounded, reaching a high of around $28,295 in the early morning around 5:30 AM. At the time of writing, it was trading around $28,000, with a 24-hour increase of 1.31%.
Ethereum showed a similar trend, with the current price at $1,643, reflecting a 1.27% increase over the past 24 hours." |
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Post time 13-10-2023 11:46:18
