US Jobs Report Sinks Fed Hike Odds to 65%

The Federal Reserve's interest rate hike prospects have taken a hit following a weaker-than-expected July jobs report. Traders on Kalshi, a prediction market platform, now see a 65% chance that the central bank holds rates steady in September, up from about 50-50 before the report. This shift in odds was also reflected on CME's FedWatch tool, where those chances are now at 60%. The July jobs miss has investors looking to the upcoming Consumer Price Index (CPI) report for the month of August, set to be revealed on August 12.

The US economy unexpectedly shed 23,000 jobs in July, leading many to reassess their expectations for a rate hike. Before the Fed's last meeting at the end of July, odds of a hike were at almost 58%, but have now fallen significantly following the disappointing jobs report.