"Market fluctuations caused by U.S. non-farm data"

On June 7th, the US Bureau of Labor Statistics released the May non-farm payrolls report. The data showed an increase of 272,000 non-farm employment, far exceeding expectations, while the unemployment rate broke through 4% for the first time in two years. This data has attracted widespread attention and fluctuations in the market.
In terms of specific data, the seasonally adjusted non-farm employment increased by 272,000 people in May, higher than the market's expectation of 185,000 people. The increase in employment was mainly concentrated in healthcare, government sectors, and leisure and hospitality industry. However, the revised data for March and April showed a total decrease of 15,000 people in newly added employment compared to the previous revision.
At the same time, the unemployment rate in May unexpectedly rose to 4%, reaching a new high since January 2022, when the market had previously expected it to remain unchanged at 3.9%. The latest number of unemployed people is 6.6 million, compared to a year ago when the unemployment rate was 3.7% and the number of unemployed people was 6.1 million.
The year-on-year growth rate of average hourly wages was 4.1%, higher than the expected and previous value of 3.9%. The month-on-month growth rate rebounded from 0.2% last month to 0.4%, with an expected growth rate of 0.3%. This indicates that the labor market is still relatively tight overall, and wage growth may further exacerbate inflationary pressures.
Non-farm payroll data has significantly impacted the financial markets. Following the release of the data, both the yields of the 10-year and 2-year US Treasury bonds surged, the US dollar index expanded its intraday gains, while spot gold and spot silver prices plummeted sharply.
Economists and market analysts have different interpretations of non-farm data. Some believe that strong employment data may pour cold water on expectations that the Fed may start cutting interest rates this summer, while others believe that this data is mixed and needs to be considered in conjunction with other factors.
Overall, the US non-farm data for May exceeded expectations, indicating that the employment market remains strong. However, the rise in unemployment rate and the pressure on wage growth have also raised concerns about inflation and economic prospects. The market will closely monitor the Fed's policy direction and future economic data to assess its impact on the financial markets.
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