Very Important 🚨🔥💥
The labor market data came worse than expected and showed weakness in the employment sector.
The American market added 73,000 jobs, which is less than the expected 100,000 jobs. Meanwhile, the unemployment rate rose to 4.2%.
The shock is not here but in the numbers for June and May, which changed very significantly after revisions, where May's numbers fell from 144,000 jobs to only 19,000 jobs, while June's numbers fell from 147,000 jobs to only 14,000 jobs. A total of 258,000 jobs for two months.
These adjustments are among the largest revisions since the 1970s, excluding the COVID-19 period.
In light of these numbers, the chances of interest rate cuts in September have risen to over 83%.
Most likely, July's numbers may also change significantly after revision.
I believe that the Federal Reserve will make its decision to rearrange its monetary policy in the coming September.
The markets reacted quickly to these numbers, with bond yields declining and SP500 and Nasdaq indices dropping noticeably. Bitcoin was also affected by this negative data.
