U.S. Revises Payroll Gains Downward by 911,000 Jobs for 2025
The U.S. preliminary benchmark payrolls revision showed a downward adjustment of 911,000 jobs for the year ending March 2025, the largest on record. This indicates a weaker labor market than previously reported by Nonfarm Payrolls, which influence significant capital allocation decisions and Federal Reserve monetary policy.
Key points:
- A downward revision could have led the Fed to cut rates throughout 2025.
- The Fed is expected to cut rates next week, potentially by 50 basis points instead of the forecasted 25.
Market Reactions
Traders reacted as follows:
- Gold futures surged past $3,700 before returning to flat at $3,679.
- Bitcoin fell from $113,000 to $111,600, down 1% in 24 hours.
- U.S. 10-year Treasury yields rose to 4.07%, after threatening to dip below 4%.