The US job market showed surprising strength in June, adding 147,000 jobs – well above the 106,000 economists expected.
The unemployment rate dropped to 4.1%, defying predictions it would rise to 4.3%. This positive news reduced expectations for an immediate Federal Reserve interest rate cut, with markets now seeing only a 5% chance of a July cut.
Despite some recent signs of cooling, including private sector job losses reported by ADP, the overall labor market remains resilient.