The U.S. Bureau of Labor Statistics released the September non-farm report last night, with 336,000 new jobs added, far exceeding market expectations. Although the market has increased its forecast for the Federal Reserve to raise interest rates again by the end of the year, both U.S. stocks and Bitcoin rose after a brief decline.
The U.S. Department of Labor released the September non-farm report on Friday evening (6th), showing that the number of new jobs increased by 336,000, which is twice the original estimate of 170,000 and far exceeded analysts' expectations (the previous value in August was 187,000).
The data broke analysts' expectations that high interest rates, the resumption of student loan repayments and rising oil prices would lead to an economic slowdown. The Labor Department said that the growth in employment was concentrated in high-contact service industries: employment in U.S. restaurants and bars returned to pre-epidemic levels last month, and increased demand for hospitals, hotels and education all contributed to the growth in employment to a certain extent.
The possibility of a Fed rate hike increases
The market is worried that strong growth in the job market may undermine the Fed's efforts to combat an overheated economy and push interest rates to higher and longer levels. According to Fedwatch data, the probability of the November FOMC meeting maintaining the current interest rate of 5.25% to 5.50% has dropped to 72.9%, while the probability of raising it by one point to 5.50% to 5.75% has risen to 27.1%.
Currently, Federal Reserve officials are closely watching the September Consumer Price Index (CPI), PPI and other data to be released next week.
The four major U.S. stock indexes turned from negative to positive
Although the market increased its prediction that the Federal Reserve would raise interest rates again by the end of the year, causing U.S. stocks to fall at the opening, they quickly regained their footing, with all four major indexes ending the day higher.
The Dow Jones Industrial Average rose 288.01 points (0.87%) to close at 33,407.58.
The Nasdaq Composite Index rose 211.51 points, or 1.6%, to close at 13,431.34.
The S&P 500 index rose 50.31 points (1.18%) to close at 4,308.5.
The Philadelphia Semiconductor Index rose 68.24 points, or 2.0%, to close at 3,475.21.
Bitcoin and Ethereum surge after a dive
The volatility in the crypto market was even more dramatic. When the data came out, Bitcoin plunged to nearly $27,100, but soon made a V-turn and rose, reaching a high of $28,295 at around 5:30 in the morning. At the time of writing, it was fluctuating around $28,000, up 1.31% in the past 24 hours.
Ethereum has a similar trend, trading at $1,643 at the time of writing, up 1.27% in the past 24 hours.
