Jobs Report Sparks Rate Hike Odds, Weighs on Gold and Bitcoin
The US economy added 162,000 jobs in August, significantly exceeding economists' forecasts of 53,000. The unemployment rate remained steady at 4.1%, matching expectations.
The strong jobs report led to increased speculation about a Federal Reserve interest rate hike, with Fed funds futures traders now pricing a 58% chance of a hike at the central bank's September 15-16 meeting. This is up from 49.4% the day before.
The Dow Jones Industrial Average fell 226 points, or 0.4%, while the S&P 500 slid 0.2%. The Nasdaq Composite ticked up 0.1%. Treasury yields rose across the curve, with the two-year note touching its highest level since January 2025.
Gold and Bitcoin also felt the impact of the strong jobs report, with gold falling to a session low of $4,380 an ounce and Bitcoin dropping more than 2% to trade near $79,300. The stronger dollar made risk-free assets more attractive, weighing on dollar-priced assets like Bitcoin.