Strong U.S. job growth beats expectations
The U.S. economy added a large number of jobs in May, exceeding expectations and defying concerns that the labor market may be slowing. This development may reduce the incentive for the U.S. Federal Reserve (FED) to lower interest rates in the short term.
Nonfarm payrolls rose by 272,000 in May, a significant increase from April's 165,000 and well ahead of estimates of 190,000, according to the U.S. Department of Labor's Bureau of Labor Statistics. Despite strong job growth, the unemployment rate rose to 4%, the first time it has exceeded that level since January 2022. Economists had expected the reading to remain unchanged at April's 3.9% reading.
Dousing interest rate cut expectations, U.S. stocks did not collapse
The three major U.S. stock indexes were not affected and closed close to record highs on the previous trading day. "At the end of the day, it's all about the economy, it's about GDP growth, GDP corporate earnings, consumer health, and that's going to win in the long run," said Gary Cohn, vice chairman of IBM and former director of the U.S. National Economic Council.
The crypto market plummeted: Bitcoin once broke 69K, ETH 3600, and alternative coins suffered tragically
According to CoinMarketCap, the top ten largest market capitalization coins have experienced overall declines. Bitcoin once fell below 69K, ETH fell by 3600, and spot ETF expectations were delayed again due to the unclear attitude of the SEC in approving S-1. BNB moves away from the 700 level after breaking to new highs.
Meme coins were also shaken, but only slightly down compared to the gains:
Crypto real economy lacks support
Expectations of interest rate cuts are market speculation factors, and changes in expectations can bring strong fluctuations to the market. When the situation turned negative, U.S. stock companies were not affected by the support of their strong real economy. However, due to the large gap between the size of the real economy and the market value of tokens, the cryptocurrency market is less resilient to negative developments if it relies solely on speculative expectations.
This article: Employment report dampens interest rate cut expectations! U.S. stocks remain near record highs, crypto market plummets appeared first on Chain News ABMedia.
