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Strong US Nonfarm Payrolls Report Causes Volatility in Cryptos, Stocks, and Treasury Markets

2 mins
Updated by Ali M.
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In Brief

  • The US Nonfarm Payrolls report had a significant impact on financial markets, causing volatility in cryptocurrency, stock, and Treasury markets.
  • The report showed a surprise fall in the unemployment rate to 3.4% and an increase in new jobless claims to 517,000, the highest since August 2022.
  • The average hourly wage growth remained at the 0.3% M/M pace, seen as a cooling effect in the labor market.
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The US Labor Department recently released a report that has left policymakers with mixed feelings. The report showed a surprising fall in the unemployment rate to 3.4%, the lowest since 1969. However, the number of new jobless claims reached 517,000, the highest since August 2022.

US Nonfarm Payrolls Report
Source: US Bureau of Labor Statistics

Despite the concerns raised by the high number of jobless claims, there is a silver lining in the report. The average hourly wage growth remained at the 0.3% M/M pace, which has been seen as a cooling effect in the labor market. Despite the lack of progress in labor market tightness, fears of wage growth picking up again are present.

Market React to Strong US Nonfarm Payrolls Report

Federal Reserve Chairman, Jerome Powell, commented on the report during a recent speech, stating that the current state of the labor market is encouraging. Powell added that in his view, the labor market would have to see some weakening in order to make further progress towards the 2% inflation target set by the Federal Reserve.

The release of the US Nonfarm Payrolls Report had a significant impact on financial markets. The S&P 500 futures fell from $4,171.25 to $4,138.5, while 10-year T-Note futures fell from 115-19 to 114-24. The DXY rallied from $101.68 to $102.34 and terminal rate pricing rose 5bps to 4.95%, up from just beneath 4.90% prior to the release.

The crypto market also experienced a spike in volatility following the report, with Bitcoin taking a 1.25% nosedive, Ethereum losing 30 points in market value, and Ripple’s XRP token retesting the $0.40 support level.

Crypto Stocks
Source: Google Finance

The mixed signals in the report have left many experts and investors cautious as they try to interpret the state of the US economy and what it means for their investments. The ongoing challenges posed by the COVID-19 pandemic and the reaction of the labor market will continue to be closely watched in the coming weeks and months.


In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.

This article was initially compiled by an advanced AI, engineered to extract, analyze, and organize information from a broad array of sources. It operates devoid of personal beliefs, emotions, or biases, providing data-centric content. To ensure its relevance, accuracy, and adherence to BeInCrypto’s editorial standards, a human editor meticulously reviewed, edited, and approved the article for publication.

Ali discovered the concept of Bitcoin in 2012 after reading the whitepaper. The idea of a decentralized, unrestricted, and censorship-resistant currency sparked his interest and...