US jobs data beats expectations, sparking fears of Fed rate hikes and sending stocks and Bitcoin sharply lower.
The US economy added 172,000 jobs in May, more than double the expected 80,000-85,000, causing a sharp market reaction. The Nasdaq fell over 4%, the S&P 500 dropped 2.6%, and Bitcoin slid below $62,000 as investors priced in a higher chance of Federal Reserve interest rate hikes. Treasury yields rose to 12-month highs, reflecting expectations of tighter monetary policy. This event highlights how strong labor data can trigger broad market selloffs, including in crypto, due to increased opportunity costs of holding non-yielding assets like Bitcoin.
The US economy added 172,000 jobs in May, more than double the expected 80,000-85,000, causing a sharp market reaction. The Nasdaq fell over 4%, the S&P 500 dropped 2.6%, and Bitcoin slid below $62,000 as investors priced in a higher chance of Federal Reserve interest rate hikes. Treasury yields rose to 12-month highs, reflecting expectations of tighter monetary policy. This event highlights how strong labor data can trigger broad market selloffs, including in crypto, due to increased opportunity costs of holding non-yielding assets like Bitcoin.
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