July’s 23,000 job decline and downward revisions to prior months push Fed rate hike odds below 50% for September.
The US economy lost 23,000 jobs in July, defying forecasts for an 80,000 gain and marking the second straight month of labor market weakness. June’s job growth was revised sharply lower to 20,000 from 57,000, while May’s gains were cut to 63,000 from 129,000.
Expectations had centered on 80,000 new jobs for July, with unemployment projected to hold at 4.2%. Instead, the unemployment rate edged down to 4.1%. The last negative jobs print occurred in February, when 156,000 jobs were lost.
Stock and bond markets reacted positively, with US index futures rising and interest rates dipping. Gold and silver surged 3% and nearly 6%, respectively, while bitcoin held near $65,000 with minimal movement.