MICA Daily | US job data better than expected, Fed rate cut probability greatly reduced

The Bureau of Labor Statistics (BLS) released the Job Openings and Labor Turnover Survey (JOLTS) data for November last year, showing that the number of job openings reached 8.09 million, higher than the economists' forecast of 7.7 million. The job vacancy rate rose to 4.8% in November and the quit rate decreased. The number of voluntary quits decreased from 3.28 million in October to 3.06 million, which is better than expected. The employment market report has rekindled market expectations for the Fed to maintain the current Intrerest Rate policy, triggering dumping of risk assets and price declines.

The increase in job vacancies is mainly concentrated in small enterprises, with 273,000 positions added in the professional and business services sector, 105,000 in the financial and insurance sector, and 38,800 in the private education services sector. However, the software and technology industry saw a decrease of 89,000 job vacancies, which is better than market expectations. Despite the rise in job vacancies, employers remain cautious in the post-pandemic recruitment boom. Economists believe that businesses may be waiting to see the direction of Trump's policies after taking office, including plans to reduce taxes, increase import tariffs, and expel illegal immigrants.

This also caused Bitcoin to break through the $100,000 mark yesterday, but it only lasted for about 24 hours before quickly falling back. Bitcoin reached a high point of nearly $103,000 amid the continuous increase of many companies and the return of institutional investors' funds. However, the bulls failed to continue the upward trend and coincidentally encountered the release of employment reports, which were better than expected, leading to a gradual decline in prices, eventually falling to the $97,000 range.

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The article 'MICA Daily | US employment data better than expected, Fed rate cut probability greatly reduced' was first published in 'Blocklike'.