U.S. job growth blows past forecasts, setting stage for Fed rate hikes
Bitcoin is now facing another headwind — the prospect of higher interest rates.
What to know:
- The U.S. economy added 172,000 jobs in May, more than double economist forecasts of 85,000.
- The unemployment rate came in at 4.3%, in line with expectations.
- Bitcoin remained lower for the session at $61,900 following the report.
Bitcoin remained under pressure following the report, trading below $62,000 as the broader crypto market nursed steep overnight declines.
The 10-year Treasury yield jumped to 4.52% following the report. U.S. equity index futures were also lower, the Nasdaq 100 index down 1.2%. Oil prices edged modestly lower at $94 per barrel, while gold slid 1.1% to around $4,400 per ounce.
Recent economic data continue to point to a resilient U.S. economy this week. Both the ISM Manufacturing PMI and ISM Services PMI came in above expectations and remained in expansionary territory.
U.S. equities have had an incredibly strong run, with the S&P 500 about to post gains for 10 consecutive weeks and rising roughly 10% year-to-date. However, some exuberance has faded from the semiconductor sector following Broadcom’s earnings report, which disappointed investors with a weaker-than-expected outlook for AI-related chip demand.
