The latest released U.S. employment data presents a complex economic picture. The unemployment rate has risen slightly to 4.2%, an increase of 0.1 percentage points from the previous month, and is expected to fluctuate between 4% and 4.2% in 2025. The non-farm payrolls increased by 73,000, although below the expected 106,000, it shows a significant improvement compared to last month’s 14,000. This data reflects a weakening momentum in the job market, which may be related to the overall poor economic performance.

However, the wage data shows a different trend. The annual wage growth rate exceeded expectations, and the monthly growth rate also met expectations, with both indicators rising by 0.1 percentage points compared to the previous month. This phenomenon may suggest that inflationary pressures still exist.

This set of data has had multiple effects on the financial markets. The slowdown in employment growth seems to provide some justification for interest rate cuts, but the trend in wage growth may suppress the decline in inflation, which could be detrimental to interest rate cut decisions. This contradictory economic signal has brought uncertainty to the markets.

For the stock market, this is a double blow: on one hand, the weak job market reflects poor economic conditions; on the other hand, wage growth may maintain inflation levels, delaying interest rate cut expectations. As a result, the US stock market opened with a gap down, and the cryptocurrency market also fell accordingly.

Despite the market experiencing a pullback, this moderate adjustment may help alleviate asset bubbles and reduce potential financial risks in the long run. Although the current market response brings short-term pressure to investors, it may be beneficial for the long-term healthy development of the economy.