Finance

Nonfarm payrolls grew by only 57,000 in June, roughly half of what economists had projected, marking a sharp deceleration from previous months. Although the headline unemployment rate ticked down to 4.2%, this decline was primarily attributed to 720,000 workers exiting the labor force. Average hourly earnings growth also slowed to an annual pace of 3.5%, failing to keep up with the 4% inflation rate and weighing on overall consumer sentiment.

U.S. Treasury yields initially declined following disappointing employment reports, though the 10-year note eventually recovered to settle near 4.49%. Market expectations for an imminent Federal Reserve rate hike in July dropped to approximately 20% as signs of a cooling labor market emerged. Despite these cooler data points, Fed officials maintain a restrictive stance, emphasizing their commitment to returning inflation to a 2% target amidst persistent price pressures.

Bitcoin surged back above the $61,000 threshold, breaking away from its recent correlation with tech stocks as investors reacted positively to the softer-than-expected jobs data. Ethereum also experienced a pronounced rally, breaking through $1,700 before consolidating alongside gains in cryptocurrency-related stocks. The broader market sentiment in the digital asset space remains fragile, however, with analysts monitoring whether major tokens can sustain these levels after recent ETF outflows.