Key Facts
• Yen rose over 2% against the dollar, reaching 147.30, the highest since April 10.
• U.S. nonfarm payrolls grew by 73,000 in July, below the forecast of 104,000.
• May and June job growth figures were revised down by nearly 260,000.
• U.S. unemployment rate increased to 4.2% in July.
• Bloomberg Dollar Spot Index dropped 0.9%, marking its steepest decline since April 11.
• S&P 500 fell 1.6%, its largest drop since May, with Amazon down 8.3%.
• U.S. Treasury yields fell sharply, with the 2-year yield dropping 29 basis points to 3.665%.
• September rate cut probability surged to 90%, up from less than 40% pre-jobs data.
• Crude oil prices dropped 2.8%, with WTI futures closing at $67.33 per barrel.
• Gold prices rose 1.8%, with spot gold reaching $3,347.89 per ounce.
Summary
The yen surged over 2% against the dollar, reaching 147.30, following weaker-than-expected U.S. jobs data. Nonfarm payrolls grew by 73,000 in July, missing forecasts, while May and June figures were revised down significantly. The unemployment rate rose to 4.2%, fueling speculation of a September Federal Reserve rate cut, with market odds jumping to 90%. The Bloomberg Dollar Spot Index fell 0.9%, its steepest drop since April. U.S. stocks tumbled, with the S&P 500 down 1.6% and Amazon plunging 8.3%. Treasury yields also dropped sharply, with the 2-year yield falling 29 basis points. Crude oil prices declined 2.8% amid economic concerns, while gold prices rose 1.8% as investors sought safe-haven assets. The market turbulence reflects growing fears of a slowing U.S. economy and potential policy shifts by the Federal Reserve.
