• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

How the Unexpected US Employment Surge Affected Markets

user avatar

by Giorgi Kostiuk

3 months ago


In December, the US labor market surprised everyone with a significant employment surge that far exceeded analysts' expectations. While this gave the economy an added boost, the financial markets' reaction was not as positive.

December Employment: A Surprise Surge

According to the US Bureau of Labor Statistics, nonfarm payrolls rose by 256,000, outpacing the forecast of 155,000. November's figure was also revised upwards to 212,000. The unemployment rate decreased to 4.1%.

Wage Growth Slows and Market Reaction

Average hourly earnings increased by 0.3% in December, aligning with expectations. On an annual basis, wages grew by 3.9%, slightly missing forecasts. These numbers suggest that wage pressure as a source of inflation is easing. However, markets reacted nervously, with stock futures falling and Treasury yields spiking.

The labor market situation rewrites the rulebook, prompting a reevaluation of future monetary policy expectations.

Inflation Expectations and Bond Market

Consumer inflation expectations have now reached levels not seen since the 1980s. The financial markets responded vigorously: bond yields rose, and the US Dollar Index climbed to a 26-month high. This casts doubt on the feasibility of the Fed's planned interest rate cuts in the coming years.

The unexpected rise in US employment raises doubts about the sustainability of the Fed's rate cut plans. Markets, fearing inflation and financial instability, are reacting tensely, complicating future forecasts.

0

Share

Other news

Crypto Analyst Bets on Meme Coins for Higher Returns

Analyst Tony Edward shifts from major digital assets to meme coins, predicting better results.

user avatarGiorgi Kostiuk

5 minutes ago

Circle's Significant IPO and Its Potential Market Impact

Circle's IPO could influence the crypto market by impacting stablecoin regulations.

user avatarGiorgi Kostiuk

5 minutes ago

Trump's Crypto Activity: Challenges for Republicans

Trump's interest in cryptocurrencies alters Republican stances.

user avatarGiorgi Kostiuk

6 minutes ago

Metaplanet: Increasing Bitcoin Reserves and 96% Yield Growth in Q1 2025

Metaplanet increased its Bitcoin reserves to 4,046 BTC and achieved a 95.6% yield in the first quarter of 2025.

user avatarGiorgi Kostiuk

16 minutes ago

MAGACOINFINANCE Breakthrough: How the New Token Captures the Market

MAGACOINFINANCE is rapidly gaining popularity, attracting attention with a potential $1 valuation.

user avatarGiorgi Kostiuk

16 minutes ago

Circle Plans IPO on NYSE with Ticker CRCL

Circle, issuer of USDC stablecoin, has filed for an IPO on the NYSE under ticker CRCL.

user avatarGiorgi Kostiuk

26 minutes ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.