TLDR
The US added only 29,000 jobs in September, far below the forecast of 90,000.
The unemployment rate rose to 4.2%, higher than the expected 4.1%.
Bitcoin traded just under $87,000 after the report was released.
Nasdaq futures rose 1.2% as investors reacted to the weak data.
Odds of a second Federal Reserve rate hike this month dropped to 23% before the report.
The US economy added just 29,000 jobs in September. This number came in well below what economists expected.
Bloomberg had surveyed economists ahead of the report. Those economists predicted a gain of 90,000 jobs for the month.
The unemployment rate also moved higher. It rose to 4.2% from 4.1% in August.
Economists had expected the rate to hold steady at 4.1% for a third month in a row. Instead, it ticked upward.
What the Jobs Data Showed
The Labor Department released the data on Friday morning. It is known as the Nonfarm Payrolls Report.
August’s job gains were also revised down. The original report showed 162,000 new jobs, but that number was lowered to 133,000.
Other labor data released before Friday’s report gave a mixed picture. Survey data from August showed that job openings, hiring, and layoffs stayed mostly flat.
Payroll company ADP had released its own report earlier in the week. That report showed private employers added 90,000 jobs in September, which was better than expected.
Company layoffs have stayed limited in recent months. Still, businesses have been slow to hire new workers.
Market Reaction to the Report
Bitcoin was already trading higher before the report came out. After the data was released, it continued trading just under $87,000.
US stock index futures also moved higher. The Nasdaq gained 1.2% in early trading.
The 10 year Treasury yield fell seven basis points after the report. It dropped to 5.17%.
Gold prices rose more than 1% following the jobs data. The US dollar fell against other major currencies.
Interest rates had been rising through September before this report. Bond buyers returned to the market late in the week as that trend started to shift.
Short term rate markets had nearly fully priced in a second rate hike from the Federal Reserve. That hike was expected at the central bank’s meeting on October 28.
In the 48 hours before the jobs report, those odds fell sharply. Markets were pricing in just a 23% chance of another hike before the data was released.
The weak jobs report raises questions about the Fed’s recent policy moves. Investors are now watching to see if hiring plans have stalled as rates have climbed.
The Fed’s next policy meeting is scheduled for October 28. Traders will be watching closely for any change in the central bank’s approach based on this new data.
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