US Jobs Report Boosts September Rate Hike Odds to 60%

The US jobs report for August showed a strong addition of 215,000 jobs, exceeding the consensus estimate of 145,000. This unexpected strength has increased the probability of a September Fed rate hike to 60%, up from earlier in the week.

The labor market is described as stable, with hourly earnings holding up, while higher energy prices are feeding through the economy and keeping inflation risks in focus. The Federal Reserve's incentive to tighten monetary policy remains strong due to these rising fuel costs.

Asset classes reacted differently to the news: S&P 500 futures and Bitcoin took a hard hit, while the Nasdaq managed to hold its ground. The Russell 2000 index has shown resilience over the last few sessions, refusing to break down despite surging Treasury yields.