Finance

June nonfarm payrolls arrived significantly below projections at 57,000, marking a sharp decline from previous months and fueling belief that the labor market is entering a cooling phase. This lackluster jobs report has led many market participants to reduce their bets on future interest rate hikes by the Federal Reserve, ahead of the release of meeting minutes later this week.

U.S. Treasury yields retreated as bond investors recalibrated expectations following disappointing labor market indicators. The benchmark 10-year note yield settled near 4.45%, while the policy-sensitive 2-year yield fell to approximately 4.11%, reflecting a broader market sentiment that inflationary pressures are stabilizing.

Crude oil futures traded below $70 per barrel as the reopening of the Strait of Hormuz improved global transport flows. With OPEC+ slated to increase production next month and U.S. exports remaining elevated, analysts noted that recent energy shortages appear to be transforming into a near-term supply glut, which may further ease inflationary pressures.