US adds 165,000 jobs in October, far exceeding expectations - Semafor

The US added 165,000 jobs in October, blowing past economists’ expectations, and the unemployment rate ticked down to 4.1%.

The Bureau of Labor Statistics also revised August and September figures upwards, indicating that the economy is hotter than previously anticipated. The economy’s resilience adds to evidence that the US Federal Reserve will hike interest rates at its December meeting, allowing the central bank to focus on tackling elevated inflation stemming from the Iran war: Odds of a rate hike jumped 12 percentage points following the release, according to CME Fedwatch.

But some traders questioned whether the Fed would have the appetite to raise rates following Thursday’s $2.5 trillion tech selloff, sparked by fears that Democratic gains in the US midterms could slow the AI buildout. “Will the Fed want to raise interest rates in the face of a market which is teetering?” an equity trader asked.