Decline in Average 3-Month Jobs Report Sees Bitcoin Rise
According to the jobs report from the US Bureau of Labor Statistics, non-farm payrolls rose by 253,000 in April, while the three-month average fell to 222,000, increasing the chances of a Fed rate cut.
The unemployment rate came in at 3.4%, 0.2% lower than estimates in a jobs report that should have sent markets south.
Bitcoin rises to $29,300 despite labor data
Stocks rose, however, with the S&P 500 and the Dow Jones Industrial Average rising 1.4%. The Nasdaq composite also rose 1.8 percent. Bitcoin (BTC) was trading at $29,322 at press time.
ETH rose marginally from $1913.78 to $1945.69, with the rest of the top 10 cryptos largely indifferent. Spot gold also eased to $2,014.00 an ounce, shedding record gains from earlier this week.
According to Steve Rick of CUNA Mutual Group:
“It is encouraging to see a strong jobs report amid recession concerns, banking sector instability and ongoing layoffs.”
The news barely moved the CME Group’s prediction that the Federal Reserve (Fed) will soon cut interest rates. The CME Group’s inflation tool suggests markets are pricing in a pause in interest rates, with just an 8.5% chance of further increases.
Fed Chair Jerome Powell hinted at a rate pause earlier this week after announcing a 25 basis point rate hike.
Jobs report reveals actual decline
A closer look beneath the surface hinted at the bullish moves assessed as revised jobs numbers for February and March, both of which came in 149,000 lower than previously estimated.
Overall, the average number of jobs added over the past three months fell to 222,000 from 295,000 at the end of March.
Matt Peron of Hanus Henderson Investors argues that the best conclusion is that job growth has slowed on average, but he expects more market volatility.
However, hourly wage growth, which the Fed considers a key driver of inflation, rose half a percent in April. Annually, wages increased by 4.4%, increasing the chances of a future rate hike.
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