U.S. nonfarm payrolls came in below expectations, prompting the market to lower its expectations for a Fed rate hike.

Deep TechFlow News: On July 02, the U.S. economy added 57,000 nonfarm payroll jobs in June, coming in below Wall Street expectations. Earlier, employment growth had exceeded expectations for three straight months; in June, the pace of job growth slowed, prompting the market to scale back expectations for Federal Reserve rate hikes. Data released by the U.S. Bureau of Labor Statistics on Thursday showed that the number of new jobs added in June fell sharply from May’s revised 129,000, and was also below the 115,000 that economists surveyed by Bloomberg had forecast.

The report signals a significant cooling in the labor market after three consecutive months of better-than-expected employment growth. Despite the decline, job gains are still far above the target of an average of 10,000 new jobs per year in 2025. The unemployment rate edged down from 4.3% in May to 4.2%. As investors reduced expectations of Federal Reserve rate hikes, the U.S. dollar weakened. Futures traders currently expect the Federal Reserve to raise rates in December. Previously, the market expected a rate hike in October. (Jinshi)