U.S. Nonfarm Payrolls Increase by 22,000 in August
The U.S. employment report for August indicates ongoing weakness, potentially leading to a Federal Reserve rate cut in mid-September.
- Nonfarm payrolls increased by 22,000, below the forecast of 75,000 and July's revised figure of 79,000.
- Unemployment rate rose to 4.3%, matching forecasts and up from July's 4.2%.
- Average hourly earnings grew by 0.3% month-over-month and 3.7% year-over-year, both meeting expectations.
- Bitcoin (BTC) gained approximately $500 to reach $112,800 following the report.
- Gold prices surged over 1% to a record high of $3,644 per ounce.
- U.S. stock index futures rose modestly, the dollar weakened, and the 10-year Treasury yield fell to 4.11%.
Potential 50 Basis Point Rate Cut
The discussion around a possible 50 basis point rate cut has emerged, shifting from the previously expected 25 basis points. The soft employment numbers may support this transition. If a larger cut does not stimulate the crypto market, bullish sentiment could be reevaluated.