• 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

4 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

Success Secrets: How an Ethereum Trader Turned $250 into $20 Million with PEPE and What’s Next?

The Ethereum trader who made millions on PEPE announces a new AI-based meme token, FloppyPepe.

user avatarGiorgi Kostiuk

a minute ago

BTFD Coin Presale Ends May 26: 5 Cryptos to Watch for 1000x Potential

BTFD Coin presale ends on May 26. Explore 5 cryptocurrencies with high growth potential.

user avatarGiorgi Kostiuk

3 minutes ago

MAGACOINFINANCE: Crypto Investors Turning Attention to New Token

The cryptocurrency MAGACOINFINANCE is drawing attention as XRP and Solana continue to show strength.

user avatarGiorgi Kostiuk

19 minutes ago

AI Agents from Unstaked: Revolutionizing Crypto Usage

Unstaked introduces AI agents that promise automation and real results for users in the crypto world.

user avatarGiorgi Kostiuk

24 minutes ago

Michael Saylor: BlackRock IBIT Could Become the Largest ETF in the World

Michael Saylor predicts BlackRock's Bitcoin ETF will rank first among ETFs within ten years.

user avatarGiorgi Kostiuk

40 minutes ago

DeFi Development Corp Plans to Raise $1 Billion for Solana Token Purchases

DeFi Development Corp files with SEC to raise $1 billion targeting an increase in its Solana token holdings.

user avatarGiorgi Kostiuk

40 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.