U.S. October Jobs Miss Expectations, Bitcoin Remains Lower at $34.3K

U.S. October Jobs Miss Expectations, Bitcoin Remains Lower at $34.3K

The U.S. October jobs report fell short of expectations, as the country added 150,000 jobs compared to the forecasted 180,000. This marks a decrease from the previous month’s gain of 297,000 jobs. The unemployment rate also rose slightly to 3.9%, missing the predicted rate of 3.8%. Moreover, revisions to the data revealed a downward adjustment of 101,000 job gains in August and September. In the wake of this news, Bitcoin remained lower at $34.3K. As the bond market reacts to the possibility of a halt to Federal Reserve rate hikes, falling yields could stimulate risk appetite for assets like stocks and potentially benefit Bitcoin as well. This report has prompted a shift in stock index futures from negative to positive, with the S&P 500 and Nasdaq both increasing by around 0.45%. Treasury yields have also dropped further, indicating a higher likelihood of a rate cut in the near future.

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U.S. October Jobs Miss Expectations

The U.S. added 150,000 jobs in October, falling short of economist expectations for 180,000. This figure is also lower than the 297,000 jobs added in September. Furthermore, the unemployment rate rose to 3.9%, higher than the forecasted rate of 3.8% and September’s rate of 3.8%. Additionally, there were downward revisions to the job gains reported in August and September, totaling 101,000. This disappointing report indicates a possible slowdown in the U.S. labor market.

Bitcoin Remains Lower at $34.3K

In response to the jobs report, Bitcoin’s price remained lower at ,300. The immediate impact of the report on the cryptocurrency market is evident, with Bitcoin experiencing a decline. Market participants are closely monitoring the relationship between employment data and Bitcoin prices to understand the overall sentiment in the market.

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Checking Other Report Details

Apart from the headline figures, other details of the jobs report also warrant attention. average hourly earnings in October were 0.2% higher, slightly below the estimated 0.3% increase. This increase falls short of September’s 0.3% growth as well. On a year-over-year basis, average hourly earnings rose by 4.1%, surpassing the expected growth rate of 4.0% but lower than September’s 4.3% increase. These figures suggest a moderate increase in wages but at a slower rate than expected.

Impact of Falling Yields on Stocks and Bitcoin

Recent declines in interest rates have resulted in falling yields across the U.S. bond market. This decrease in rates has led traders to believe that the Federal Reserve might halt its tightening of monetary policy. Consequently, traders have begun adding fixed income assets to their portfolios. The 10-year Treasury yield, which had exceeded 5% on October 19, fell to 4.64% prior to the release of the jobs report. Similarly, the two-year Treasury yield decreased to 4.97%. Falling yields have been beneficial for stocks as they have rebounded from a slump that began in late July. Both the S&P 500 and Nasdaq indexes have seen approximately a 5% increase in the past few sessions. The same positive impact is anticipated for Bitcoin as declining interest rates could reignite risk appetite and positively impact the cryptocurrency market.

Key Details of U.S. October Jobs Report

While the headline figures of the jobs report fell short of expectations, there are some noteworthy details to consider. Average hourly earnings, though not meeting estimates, indicate a modest increase in wages. Furthermore, the falling interest rates have had a positive effect on the bond market, prompting traders to reevaluate their investment strategies. In response, U.S. stock index futures have turned from negative to positive, with both the S&P 500 and Nasdaq indexes showing a 0.45% increase. Additionally, there has been a decline in Treasury yields, further indicating the impact of the jobs report on the financial market.

Impact on U.S. Stock Index Futures

Following the release of the jobs report, U.S. stock index futures experienced a turnaround from negative to positive. Both the S&P 500 and Nasdaq indexes rose by approximately 0.45%. This positive shift in the futures market suggests that investors have found some optimism in the jobs report despite the disappointing headline figures. Furthermore, there has been a decline in Treasury yields, with the 10-year yield falling by 12 basis points to 4.54% and the 2-year yield decreasing by 10 basis points to 4.87%. This change in market sentiment is also reflected in the increased odds of a rate cut in March 2024, which jumped to 20% after the release of the report.

Odds of Rate Cut Increase

The jobs report has had a significant impact on the expectations for future interest rate cuts. The odds of a rate cut in March 2024 have jumped to 20%, compared to the previous estimate of 13% prior to the release of the report. This increase in the likelihood of a rate cut reflects the market’s interpretation of the jobs data and its implications for monetary policy decisions. The Federal Reserve will likely consider this data when determining future adjustments to interest rates.

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In summary, the U.S. October jobs report missed expectations, with fewer jobs added and a rise in the unemployment rate. The immediate impact on Bitcoin was a lower price, while stocks and futures experienced a turnaround from negative to positive. Falling interest rates have impacted the bond market and contributed to the positive response in stock index futures. The odds of a rate cut have increased, and the report’s details reveal average hourly earnings falling short of estimates. CoinDesk, a trusted source for cryptocurrency news, emphasizes its commitment to journalistic standards and provides disclosure and privacy information to its readers.

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