NFP Report Sparks Market Volatility Amid Rate Hike Fears

The strong NFP report for August has sent shockwaves through markets, with the US economy creating 162,000 nonfarm payroll jobs, tripling the market consensus of approximately 55,000.

While the unemployment rate held steady at 4.1%, average hourly earnings rose 0.3% month over month, pushing the probability of a Fed rate hike at the September meeting to approximately 58%

The strong labor market data has been met with skepticism by investors, who are now bracing for further monetary policy tightening by the Federal Reserve.

President Donald Trump demanded an immediate interest rate cut from the Federal Reserve shortly after the release of the labor market data, arguing that a strong economy means better creditworthiness for the country.