U.S. economy is proving remarkably resilient, but investors aren’t smiling! What’s behind the 77.7% probability of a rate hike?

The U.S. labor market put in a remarkably strong performance this time, adding 165,000 nonfarm jobs in October, far above market expectations.
In theory, strong employment should be good news, but financial markets don’t necessarily see it that way.
The reason is simple: the stronger the labor market, the more reason the Federal Reserve has to remain vigilant. Concerns about a December rate hike are growing, with the probability of a hike reportedly reaching 77.7%.
This has prompted many investors to rethink their investment strategies for year-end.
More importantly, life for U.S. consumers has not gotten any easier just because the employment figures look good. High prices continue to erode purchasing power, and consumer confidence remains weak.
Wages may be rising, but the cost of living isn’t standing still either.
If inflation fails to return to the desired level, the Federal Reserve may continue to maintain tight monetary policy.
What does this mean for Bitcoin and U.S. stocks?
Simply put, borrowing costs may remain high, and market risk appetite may also be constrained. Assets that rely on liquidity to drive gains, in particular, will face a tougher test.
However, strong employment also shows that the economy is not losing momentum easily.
So what the market really needs next is not impressive employment figures, but three pieces of good news arriving together: stable employment, cooling inflation, and a recovery in consumer confidence.
Otherwise, the stronger the economy, the less urgency the Federal Reserve will have to ease, and the more investors will have to worry!$NVDA

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