September Rate Hike Bets Soar Amid Strong Jobs Report

A recent jobs figure released on Wednesday showed an upside beat, exceeding expectations. As a result, the probability of a September rate hike increased to 60%, up from less than two-thirds earlier in the week.

This surge sent stock and crypto markets down. The impact was more pronounced for some assets, with the ES and BTC experiencing sharper declines compared to others like NQ and the Russell 2000.

The job market is not showing signs of weakening, with hourly earnings looking decent despite rising oil prices. However, higher energy costs are expected to have a broader impact on the economy in the coming days, providing the Federal Reserve with more reason to consider raising interest rates to combat inflation.