US payrolls beat forecasts for second straight month, denting Fed rate-cut bets
The US economy added 115,000 jobs in April, beating economist estimates of 95,000. The print bolstered bets that the Federal Reserve will be slower to cut rates this year and lifted the dollar against major peers.
The Labor Department's nonfarm payrolls report showed the US economy added 115,000 jobs in April, well above the 95,000 consensus in a Reuters survey. The March figure was also revised higher.
The unemployment rate held at 4.2% while average hourly earnings rose 3.9% year on year. The wage print suggests services demand remains tight, giving the Federal Reserve room to take its time on rate cuts as it watches inflation drift back toward target.
Two-year Treasury yields jumped 6 basis points to 4.71% on the release, while the dollar index DXY climbed 0.4%. Fed funds futures pared the probability of a July rate cut to 22% from 38% a day earlier. Wall Street was mixed, with the SPX off 0.3%, as elevated oil prices from the Iran conflict continued to weigh on risk appetite.
More from North America
Trump Administration Appeals Second Federal Court Ruling Against Tariffs
The Trump administration has appealed a second federal court decision striking down its tariff regime. US Trade Representative Greer said the White House expects to win on appeal. The legal back-and-forth keeps global supply chains in limbo.
Strong April Jobs Report Narrows the Fed's Path to Rate Cuts
US April nonfarm payrolls rose 115,000, beating forecasts for a second straight month. The reading dents the case for rate cuts and forces investors to reprice the Federal Reserve's path. Markets now treat even a single 2026 cut as far from certain.
Cerebras Systems lifts IPO price range as demand exceeds expectations
AI chipmaker Cerebras Systems raised the price range for its initial public offering after demand outstripped expectations. The deal ranks among the largest technology listings of recent weeks.