U.S. Jobs Market Slams the Brakes: Nonfarm Payrolls Rise Just 29K, Far Below Expectations September nonfarm payrolls rose just 29K versus expectations of 90K, while unemployment climbed to 4.2%. The weak data reduced the chance of another Fed hike in October. The BLS said the U.S. added 29K jobs, below the 90K forecast. Dow Jones economists had expected 84K jobs, 4.1% unemployment and 3.1% annual wage growth. Unemployment Rate Unexpectedly Rises Unemployment rose from 4.1% to 4.2%. Private-sector hourly earnings increased just 5 cents, while the average workweek stayed at 34.4 hours. Revisions Weaken the Picture August payroll growth was revised from 162K to 133K, while July was revised to -10K. Economists said seasonal effects may have overstated August hiring. Sector Breakdown Healthcare added 17K jobs, but below its normal pace. Construction added 11K and manufacturing 9K. Fed Expectations Shift The Fed raised rates 25 bps last month to 3.75%-4.00%, its first hike in over three years. After the weak report, markets priced the chance of another hike at just 12%. Mohamed El-Erian said weak labor demand would push the Fed to wait in October. Treasury Yields Fall The 2-year Treasury yield fell 7 bps to 4.716%, while the 10-year yield dropped 6 bps to 5.176%. The moves followed a global bond selloff that pushed the 30-year yield to a 24-year high. Stocks and bonds rebounded, while gold gained about 1%. What Does It Mean for Crypto? Bitcoin was already above 86K $, up 3.4% in 24 hours. Markets had begun pricing in expectations that weak jobs data would keep Fed rates unchanged, supporting risk assets. Falling yields and lower hike expectations create a supportive short-term backdrop for crypto and stocks. However, inflation remains crucial. If inflation stays high, the Fed may maintain its tight stance despite weak employment. Inflation data will therefore be key before the October meeting. $BTC $ETH