Nonfarm payrolls fell short of expectations, and the market bets on a delayed rate hike to the end of the year

According to Odaily, US nonfarm payroll data for June showed that hiring activity slowed significantly despite a drop in the unemployment rate, dampening the early momentum of job growth this year. Data released by the Bureau of Labor Statistics on Thursday showed that nonfarm payrolls increased by 57,000 in June (market expectations were for 110,000), following a downward revision of 74,000 to the previous two months' data last month.

The unemployment rate fell because the labor force participation rate declined sharply—when the labor force participation rate drops, it means some people have exited the labor market (e.g., stopped looking for work, retired early, returned to school, etc.). These individuals are no longer counted as "unemployed" or part of the "labor force," leading to a lower unemployment rate. Following the data release, spot gold briefly surged, and the market reduced its bets on a Fed rate hike. The market has fully priced in expectations for a Fed rate hike in December, compared to earlier expectations of an October hike. (Jin Shi)