The stronger employment is, the more nervous the market gets? U.S. nonfarm payrolls beat expectations, and investors are in the Fed’s grip this time!

Financial markets can be really interesting sometimes: when the economy is weak, everyone worries about a recession; when it’s too strong, everyone worries about rate hikes.
The U.S. added 165,000 jobs in October, clearly exceeding market expectations. Investors who had been hoping the Fed would ease policy are now getting nervous again.
The probability of a rate hike in December has reportedly climbed to 77.7%.
This is the financial-market version of being caught between a rock and a hard place.
More interestingly, U.S. consumers haven’t become more optimistic despite the labor market’s solid performance. Persistently high prices continue to erode purchasing power, and consumer confidence remains weak.
In other words, the economic data looks good, but people’s lived experience hasn’t improved along with it.
If inflation remains resilient, the Fed may have little incentive to pivot quickly to an accommodative policy.
This isn’t a particularly favorable environment for Bitcoin or U.S. stocks. When the cost of capital is high, investors tend to pay more attention to risk and cash flow.
Still, strong employment also suggests that the U.S. economy has some resilience, so this report shouldn’t be taken as a sign that the economy is about to collapse.
What will really determine the market’s direction going forward is the path of inflation and Fed policy.
Investors should be wary of treating a single jobs report as the whole story.
After all, the Fed hasn’t even made its move, and the market is already scaring itself!#CPI数据前瞻