US Economy Adds 172000 Jobs in May Beating Estimates
U.S. employers added 172,000 jobs in May while the unemployment rate held steady at 4.3 percent. This stronger than expected growth led to a selloff in stocks and bonds as investors increased bets that the Federal Reserve may raise interest rates later this year to manage persistent inflation.
The United States added 172,000 jobs in May, trouncing the 85,000 gain anticipated by analysts. Labor Department data released the morning of June 5 also revised previous employment figures upward by 93,000 for March and April. The blockbuster report signals a resilient labor market that may force the Federal Reserve to consider interest rate hikes rather than cuts.
### Market Reaction to Shocking Jobs Numbers Equities and fixed income markets tumbled following the release as investors braced for higher rates. The S&P 500 fell more than 200 points, while the Nasdaq Composite sank more than 4%, or 1.122 points, due to its sensitivity to interest rate expectations.
