U.S. job growth in May significantly exceeded market expectations, prompting a reassessment of the Federal Reserve's interest rate path for the year. Following the data release, U.S. Treasury yields rose, risk assets generally came under pressure, and Bitcoin briefly fell below $62,000.
172,000 new jobs were created in May.
The U.S. Bureau of Labor Statistics reported on Friday that nonfarm payrolls increased by 172,000 in May, far exceeding economists' consensus forecast of 85,000. The unemployment rate was 4.3%, in line with market expectations.
This data reinforces the assessment that the US economy remains resilient and has further delayed market expectations for the timing of easing measures. For the crypto market, higher interest rates for a longer period typically indicate tighter liquidity and suppressed risk appetite.
US Treasury yields react in tandem with risk assets.
Following the data release, the yield on the 10-year U.S. Treasury note rose to 4.52%. U.S. stock futures declined, with Nasdaq 100 futures falling 1.2%.
In commodities, oil prices retreated slightly to around $94 per barrel, while gold fell 1.1% to about $4,400 per ounce. Market reaction suggests that stronger-than-expected jobs data is prompting investors to repric the interest rate outlook.
- US added 172,000 jobs in May.
- Market expectation: 85,000 people
- US 10-year Treasury yield: 4.52%
Bitcoin continues to be under pressure
Bitcoin continued its downward trend following the release of macroeconomic data, trading around $61,900, still below the $62,000 mark. The crypto market had already seen a significant pullback the previous night, and strong employment data further exacerbated the market pressure.
In addition to the employment data, the ISM manufacturing and services data released this week also exceeded expectations and continued to be in expansion territory. These signals collectively indicate that the US economy has not yet cooled significantly, making it more difficult for the market to bet on the Federal Reserve shifting to easing measures soon.
US stocks had risen for several consecutive weeks, with the S&P 500 index gaining about 10% year-to-date. However, sentiment in the semiconductor sector has cooled recently, with Broadcom's earnings guidance falling short of expectations, which has also dampened market optimism about demand for AI chips.
