US adds 165,000 jobs in October, beating forecasts
Written by AI from weeklymarketrewind.substack.com's report. Not checked by a person.
The US economy added 165,000 jobs in October, well above the 65,000 expected, and unemployment fell to 4.1%. Bets on a December Federal Reserve rate hike rose to about 78%.
The US economy added 165,000 jobs in October, far more than the 65,000 economists had expected. The unemployment rate declined to 4.1% from 4.2% in September. Figures for August and September were also revised upwards by a combined 84,000 jobs, which points to a stronger labour market than previously thought.
The encouraging numbers also raised concerns that the Federal Reserve could keep a tighter monetary policy stance to contain inflation. After the report was released on November 6, market expectations of an interest rate hike in December rose to around 78%, up from 70% before the data.
The stronger outlook for rates added to uncertainty in equity markets that were already struggling with elevated technology valuations. Wall Street had a turbulent week, with a sharp selloff in technology and AI-related stocks. The Nasdaq Composite fell 3.37% over the week, and the S&P 500 lost 2.68%. Crude oil prices also recorded steep weekly losses on hopes of easing US-Iran tensions, although renewed attacks on oil tankers kept supply concerns alive.
