Nonfarm payrolls fell short of expectations, with the market betting on a delay in rate hikes to year-end

Odaily News According to U.S. June nonfarm payroll data, although the unemployment rate fell, hiring activity saw a significant slowdown in June, curbing the momentum of job growth seen earlier this year. Data released Thursday by the Bureau of Labor Statistics showed that after downward revisions totaling 74,000 to the previous two months' data, nonfarm payrolls increased by 57,000 in June (compared to market expectations of 110,000).

The unemployment rate fell due to a sharp decline in the labor force participation rate—when the participation rate drops, it means some people have exited the labor market (e.g., stopped looking for work, retired early, returned to school). These individuals are no longer counted as "unemployed" nor part of the "labor force," leading to a lower unemployment rate. Following the data release, spot gold saw a short-term surge, and the market also reduced its bets on a Federal Reserve rate hike. The market has fully priced in expectations of a Fed rate hike in December, compared to the previous expectation of an October hike. (Jinshi Data)