Last Friday, the United States published the latest job figures, and they were quite disappointing. The market had expected significantly more new jobs in the past month. Remarkably, US stock markets barely reacted to the news, while crypto prices fell.
Figures from August to October
To put October’s figures into perspective, we look back at the results from August and September. In August, the US market added 78,000 net jobs, while that number rose to 223,000 in September. However, in October the number of non-farm jobs only grew by 12,000, almost 95% less than the previous month. Economists say this sharp decline is a clear signal that the US economy is weakening and represents the weakest growth since December 2020.
Causes of the disappointing growth
Economists point to several factors that contributed to the disappointing figures. An important reason is the strikes at Boeing, one of the world’s largest aircraft manufacturers. In addition, hurricanes Helene and Milton, which hit the country hard, had a negative impact on the labor market.
Despite these disappointing figures, experts still expect a rate cut of 24 basis points in November and December. Such an interest rate cut would make borrowing cheaper, which could give a positive boost to crypto and stock prices.
Cryptocurrencies respond with slight decline
The stock markets responded to the news of the jobs figures with a slight increase, while the ten-year interest rate actually fell. At the same time, the crypto market has shown declining prices since Friday. Major coins such as Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) lost 2.8%, 3.8% and 5.7% in value respectively in the past 24 hours. The memecoin Popcat (POPCAT) was one of the biggest losers, with a 15% drop in value over the same period.
Source: https://newsbit.nl/zwakste-banengroei-sinds-2020-in-de-vs-wat-betekent-dit-voor-de-cryptomarkt/
