As a seasoned researcher with a knack for navigating the volatile world of financial markets and a keen eye for spotting trends, I find myself both intrigued and somewhat amused by this turn of events. The jobs market softening while the price of bitcoin remains steady is an interesting dichotomy, to say the least.
In July, there was a noticeable slowdown in the job market, as the U.S. only gained approximately 114,000 new jobs and the unemployment rate climbed up to 4.3%. This information comes from the Bureau of Labor Statistics.
The anticipated 175,000 jobs weren’t met by the actual creation of only 114,000 positions this time, which is a decrease from the 179,000 jobs added in June. Interestingly, even June’s numbers were revised down from the initially reported 206,000.
The unemployment rate of 4.3% was up from 4.1% in June and above forecasts for 4.1%.
The response in conventional markets was substantial. The yield on the 10-year Treasury dropped by 15/100th of a percentage, reaching 3.83%, and the two-year yield fell by a full 23/100th of a percentage, settling at 3.93%. These are the lowest levels for both in over a year. However, stocks aren’t reacting positively to these figures. Nasdaq futures have decreased by 2.3%, and the S&P 500 is down by 1.6%.
Similarly, the U.S. dollar is declining by 0.6%, while gold prices have increased by 1.3%, reaching approximately $2,513 per ounce at this moment.
Traders have significantly increased their predictions for a larger Federal Reserve interest rate reduction, with a current 70% chance of a 0.5% cut in September, compared to only a 22% chance yesterday. As of now, CME FedWatch indicates that traders are betting on a potential total of 1.25% in rate cuts by the end of this year, which is a significant increase from the previously predicted 0.75% for the whole of 2024.
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2024-08-02 15:53