WS #17027
The US economy added 165,000 jobs in October, significantly outpacing the 65,000 consensus and reversing prior downward revisions. With wages rising 0.4% m/m and participation holding steady, the data suggests the labor market remains overheated. This has immediately reignited expectations for a December rate hike, triggering a sell-off in rate-sensitive growth assets and a rally in the US dollar and bond yields.
US Labor Market & Rate Hike Fears
The US economy added 165,000 jobs in October, significantly outpacing the 65,000 consensus and reversing prior downward revisions. With wages rising 0.4% m/m and participation holding steady, the data suggests the labor market remains overheated. This has immediately reignited expectations for a December rate hike, triggering a sell-off in rate-sensitive growth assets and a rally in the US dollar and bond yields.