The US January non-farm payrolls report showed a significant miss, with employment declining by 92,000 jobs against an expected increase of 59,000. This marked the second consecutive month of below-average job gains, following 48,000 in December and 41,000 in November. The unemployment rate rose to 4.4% from 4.3%, while average hourly earnings grew by 0.4% monthly and 3.8% year-over-year, slightly outperforming expectations. Sector-wise, goods-producing industries lost 25,000 jobs, and service sectors shed 61,000, with education, healthcare, and leisure sectors seeing sharp declines. Weather disruptions and strikes accounted for roughly 30,000 missing jobs, but the overall weakness raised concerns about labor market momentum. The disappointing data triggered a sell-off in US equities, with the S&P 500, Dow, and Nasdaq all dropping sharply. Treasury yields fell as investors sought safety, with the 10-year yield hitting 4.125%. The USD initially weakened but later rebounded amid mixed market reactions. Traders are now reassessing Federal Reserve rate hike expectations, as the report suggests economic softness could delay further tightening. For global markets, the report adds pressure on the Fed to adopt a more cautious stance. Traders should monitor upcoming inflation data and Fed officials' comments for clues on policy direction. The USD's volatility will likely continue as markets digest the implications of weaker-than-expected labor data.
مباشر