An employee hiring sign with a QR code is seen in a window of a business in Arlington, Virginia, U.S., April 7, 2023.
Implied yields on contracts tied to the Fed policy rate pointed to a nearly 50% chance the Fed will lift the benchmark short-term borrowing rate a quarter of a percentage point to the 5.50%-5.75% range at its December meeting.
Before the jobs report, traders had given a quarter-point rate hike then about a 34% chance.
The report, expected to show non-farm payrolls increased by 170,000 in September but in fact showing employers added 336,000 jobs, also had traders paring bets on Fed rate cuts next year.
Futures contracts now price in a Fed policy rate of 4.69% at the end of next year, up from the 4.59% seen before the report.
Persons:
Elizabeth Frantz, Tim Ghriskey, Ingalls & Snyder, Ann Saphir, Sinead Carew, Lucia Mutikani, Chizu, Christina Fincher
Organizations:
REUTERS, Federal Reserve, Ingalls &, Thomson
Locations:
Arlington , Virginia, U.S