Despite a strong U.S. Burea of Labor Statistics' jobs report that should have sent markets south, equities rallied with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all increasing by 1.4%, 1.4%, and 1.8%, respectively. Bitcoin (BTC) traded at $29,322 at press time and ETH rose from $1913.78 to $1945.69. Spot gold was relatively stagnant at $2014.00 per ounce. Steve Ric from CUNA Mutual Group was encouraged by the report and argued that it was reassuring to see a strong jobs report, despite other factors that are causing concern and instability.

The CME Group's prediction of further Fed rate cuts remained unchanged, with markets pricing an 8.5% likelihood of an increase. Meanwhile, Fed chair Jerome Powell had previously hinted at a rate pause earlier this week. Upon further inspection, it was revised job numbers for February and March that were causing the bullish movement, as the average number of jobs added for the last three months dropped to 222,000 from 295,000. On the other hand, hour wage growth saw a 0.5% increase in April and 4.4% annually, suggesting a potential future rate hike.

In conclusion, markets reacted positively to job numbers that are within the range of what the Fed normally considers healthy and reassuring. Although job growth is slowing from the month of March, the basic message from the ‘hot jobs report’ is that the U.S. economy is still alive and ticking. This stability is reflected in the stock markets, as well as BTC and ETH prices, that continue to increase despite some volatility. However, wage growth is one of the indicators that the Fed are paying close attention to and with an increase, there may be a possibility of a future rate hike.



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