US Jobs Report Misses Big With Only 29K Added as Unemployment Rises to 4.2%

The US economy added just 29,000 jobs in September, far below the 90,000 economists had forecast. The unemployment rate also edged up to 4.2%, after forecasts called for it to hold at 4.1%. The weak reading is a clear step down from August, when payrolls grew by 162,000, and it lands as one of the most closely watched economic releases of the week.

Rate Cut Bets Grow After Weak Payrolls

Traders quickly leaned toward more rate cuts after the data, since a cooling labor market gives the Federal Reserve more reason to ease policy. Lower rates usually support risk assets, so the shift could help both stocks and crypto. Bitcoin had been trading above $86,000 ahead of the release.

Gold Jumps 2% as Recession Fears Return

Gold climbed about 2% on the news, as investors looked for safety. The softer jobs picture also revives worries about a broader economic slowdown. That leaves markets weighing two forces at once: hopes for cheaper money on one side, and fears of a recession on the other.