US Labor Market Slows Down as Rate Hike Expectations Plunge

The US labor market has slowed down significantly, according to the latest nonfarm payroll report. The Dow Jones Forecast is up after the weaker-than-expected jobs data saw markets reduce rate hike expectations.

The US added only 29,000 jobs in September, far below the forecast of 90,000. Meanwhile, August's job gains were revised lower to 133,000 from 162,000.

The unemployment rate rose unexpectedly to 4.2%, up from 4.1%, while average hourly earnings were weaker than expected across the board. Average earnings rose 0.1% monthly, below the 0.3% expected, and 3% annually, below the 3.3% forecast.

The market had already reduced October rate hike expectations to around 30% before the data release. However, the weaker-than-expected jobs report has effectively removed the prospect of an October hike from the market's focus.