Rate Hike Odds Jump as Jobs Report Exceeds Expectations

The jobs report released on Friday was stronger than expected, with 162,000 new positions added in August. This figure far exceeded the consensus estimate of 56,000 and revised July's reported loss to a gain of 21,000.

This unexpected labor market growth has shifted focus toward the next inflation reading, which will be crucial for the Federal Reserve's decision on a potential rate hike.

The odds of a hike have jumped significantly, with CME FedWatch now putting the probability at 60.2%, 4% at the September 16 FOMC meeting, up from 39.8% for a hold.

Gold miners and crypto-linked stocks took the brunt of the decline, with the VanEck Gold Miners ETF (GDX) falling 1.90%, and spot gold prices dipping 1.4% to $4,400 per ounce.