• 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

6 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

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Nasdaq and Bitcoin Reach New Heights as U.S. Economy Strengthens

chest

Nasdaq gained 31% while Bitcoin surged 44% in July 2025 due to U.S. economic strength.

user avatarGiorgi Kostiuk

Dogecoin Holds Strong, Mutuum Finance Attracts Investors

chest

Dogecoin remains above $0.15, while Mutuum Finance completes its presale phase with significant investor interest.

user avatarGiorgi Kostiuk

Stock and Cryptocurrency Trading Under Tariff Pressure: Key Highlights

chest

US stock markets decline amid new tariffs while Bitcoin reaches record highs. An overview of the situation.

user avatarGiorgi Kostiuk

DeFi Technologies Expands Presence in MENA with UAE Office

chest

The establishment of DeFi Technologies' office in the UAE reflects rising institutional interest in digital assets.

user avatarGiorgi Kostiuk

Toncoin's Correction Following UAE's Refutation of Golden Visa Claims

chest

Toncoin dropped 6% after regulators denied claims of golden visa eligibility through staking.

user avatarGiorgi Kostiuk

Proven Altcoins for Stable Future Profits

chest

An overview of altcoins with high potential for long-term growth: BlockDAG, XRP, SEI, and Toncoin.

user avatarGiorgi Kostiuk
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.