just learned something crazy!


a too strong jobs report in the US is usually BAD news for markets.
right now inflation is still too high. the fed's whole job is to cool the economy down to fix that. their main tool is interest rates.
high rates = borrowing is expensive = less spending = economy slows = inflation goes down
so when jobs come in super hot, it tells the fed "the economy is still running too fast." that means rates stay high (or go higher).
and high rates are bad for everything risky → stocks and crypto bleed
when jobs cool down GENTLY, that's good news. it tells the fed "ok you can start cutting rates soon" → money gets cheaper → risk assets pump
friday's NFP printed +172k. too hot. market read it as "fed stays tough" → everything dropped.
NFP-5.17%
post-image
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments