Macro

The US added 162,000 jobs in August, beating market expectations and reinforcing the Federal Reserve’s view that the labor market remains stable. The stronger-than-expected data revived concerns that the Fed could raise interest rates later this month. President Donald Trump again publicly urged the central bank to cut borrowing costs.

The U.S. Labor Department’s latest jobs report showed nonfarm payrolls rose by 162,000 in September, far above market expectations. The stronger labor data quickly jolted markets, sharply splitting expectations for the Federal Reserve’s next rate path into a 50/50 balance between rate cuts and keeping rates high. Risk assets broadly came under pressure, and bitcoin slid during the session below the key psychological level of $80,000.

U.S. labor market data came in stronger than expected, adding to speculation and uncertainty over the Federal Reserve’s future interest-rate path. Risk assets broadly came under pressure on the macro backdrop. Bitcoin fell, underscoring crypto markets’ concern that a high-rate environment could persist.

U.S. employers added 162,000 jobs in August, far above the 56,000 economists expected, while the unemployment rate held at 4.1%. Annual wage growth slowed to 3.1%, the weakest since June 2021. The stronger jobs report lifted expectations of a Federal Reserve rate increase in September, sending the dollar higher before it pared gains. Bitcoin fell 2.32% to $79,595.

Strong jobs data released on Sept. 4 showed higher labor force participation, with the unemployment rate steady at 4.1%. Markets raised the implied probability of a 25-basis-point Federal Reserve rate hike in September to 58.4% from 49.4%. The Dow Jones Industrial Average fell 272.51 points, or 0.51%, while trading volume totaled 13.14 billion shares, below the 20-day average.

U.S. President Donald Trump said he would stop trading with countries where the United States runs a deficit if the Federal Reserve does not cut interest rates. He argued that high rates put the United States at an unfair disadvantage. Separately, August jobs data came in stronger than expected, lifting market expectations for a Fed rate hike later this month.

US employers added 162,000 jobs in August, far above expectations of 65,000. The Labour Department also revised June and July payrolls higher by a combined 55,000. Restaurants and bars led gains with 59,000 new jobs, while construction added 22,000 and manufacturing 16,000. The labor force rose by 683,000, but average hourly wages increased 3.1% from a year earlier, the weakest pace since May 2021.

A strong U.S. jobs report has strengthened the argument for interest-rate increases, even as President Donald Trump warned he could halt trade with some countries unless the Federal Reserve cuts rates, leaving Fed Chairman Kevin Warsh under pressure ahead of the September meeting. Labor force participation rose to 61.6%, and job gains helped keep the unemployment rate steady at 4.1%. Inflation has been above the Fed’s 2% target for more than five years, and Warsh’s recent hawkish comments have been read as opening the door to a possible rate hike.

U.S. nonfarm job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, pointing to a stable labor market. After the data, markets priced about a 59% chance of a Fed rate increase at the September 15-16 meeting, up from about 55% beforehand, according to Reuters. The 2-year Treasury yield rose 5 basis points to 4.38% and the 10-year yield added 1 basis point to 4.776%, while the dollar index edged up 0.2% to 99.12.

Dovish remarks from Fed Governor Christopher Waller fueled a sharp rise across the crypto market on Thursday. Several bitcoin-linked instruments broke through key resistance levels. Risk appetite rebounded noticeably as investor concerns over the Fed’s policy path eased. The dovish signal added upside momentum to risk assets.