Dow futures surged more than 100 points today after the US reported nonfarm payrolls fell by 23,000 in July, defying analyst expectations for an increase of 88,000. The data eased investor concerns about Federal Reserve rate hikes. The CME Group FedWatch Tool indicated investors now see a 59.9% probability the Fed will hold rates at 3.50 to 3.75% at its September 16 meeting, up from 33.0% a week earlier, while the chance of a 0.25% hike dropped to 40.1% from 67%. The unemployment rate fell to 4.1%, below the 4.2% forecast, and average hourly earnings rose just 3.2% year-on-year, missing the 3.5% estimate.
Weak jobs data reduces odds of Fed rate hike, lowering the policy rate.
Weak jobs data reduces odds of Fed rate hike, lowering yields.
