Gold Miners and Crypto Stocks Plummet on Strong Jobs Data
The recent US jobs report has sparked a sell-off in gold miners and crypto-linked equities, as investors reassess expectations for monetary easing.
According to the Labor Department, nonfarm payrolls surged by 162,000 last month, far exceeding the consensus forecast of 55,000. This robust labor market data has lifted implied odds of a Fed rate hike next week to 60% from 52%, as traders now see a higher likelihood of tighter monetary policy.
The news sent gold bullion and bitcoin lower, with related equities also declining in tandem. Major gold miners such as Barrick Gold Corp (NYSE:B), Newmont Corp (NYSE:NEM), and Agnico Eagle Mines (NYSE:AEM) faced broad selling pressure, while digital asset proxies like MicroStrategy Inc (NASDAQ:MSTR) and American Bitcoin Corp (NASDAQ:ABTC) also dropped.
Crypto and mining stocks were heavily hit, with losses extending across various pure-play bitcoin miners such as MARA Holdings Inc (NASDAQ:MARA), Riot Platforms (NASDAQ:RIOT), and Hut 8 Corp (NASDAQ:HUT).