US NFP: Nonfarm Payrolls in January Undershoot at 143,000. What Does This Mean?

Wall Street had expected job growth to bump up by 169,000. At least December’s jobs number got revised by nearly 50,000 jobs more.

😎 Jobs Slip but Unemployment Slips Too

• The US economy added 143,000 new jobs in January, the latest nonfarm payrolls report USNFP showed. The figure fell short of forecasts where Wall Street was eyeing as many as 169,000 new hires tapped to join the workforce. The unemployment rate dropped to 4% from 4.1%.
• While the report for January wasn’t too upbeat, the jobs number for December was revised to the upside, going to 307,000 from 256,000.

🤝 Fed and Data = Best Friends?

• What does the mixed bag of data mean for the markets? Weaker-than-expected job additions coupled with the unemployment rate edging down to the 4% mark is mostly good news for traders and investors. Especially when it comes to the Federal Reserve’s next moves.
• The data-dependent US central bank got some more data to munch on as it weighs the next interest rate cut. The combination of slowing labor-market growth and lowering unemployment bolsters the case for a slower pace of interest rate cuts.

🤗 Markets Take It Well

• Reactions across the board: gold jumped and was on the cusp of a new record with prices floating near $2,875 per ounce, mere $5 shy of the ultimate best hit earlier this week. The US dollar stayed mum and tight-lipped as forex markets weren’t exactly sure what to do.
• Stocks opened for trading to the upside with all three major indices — S&P 500, Dow, Nasdaq Composite — showing gains right off the bat. And Bitcoin jumped to levels around $100,000 from $96,000 per coin.