U.S. Payroll Growth Misses Estimates: June Adds 57,000 Jobs

U.S. hiring cooled sharply in June, a result that could temper market pricing for a Federal Reserve rate increase as soon as late summer or early fall. The economy added 57,000 jobs last month, according to the government's Nonfarm Payrolls Report released Thursday. The figure fell short of economists' 110,000 consensus and was well below May's 129,000 gain, which was revised down from 172,000. The unemployment rate edged down to 4.2%, beating expectations of 4.3% and improving from May's 4.3%. Markets reacted quickly. Bitcoin (BTC) held above $61,000 after rising 4% over the past 24 hours to about $61,353. U.S. equities also firmed, with Nasdaq 100 futures up 0.7% after being roughly flat before the release. The 10-year Treasury yield slipped four basis points to 4.46%. Shifting interest-rate expectations have been a defining macro theme this year. Earlier, with President Trump openly pushing for lower rates and preparing to appoint a new Fed chair, investors had focused on how frequently the central bank might cut rates in 2026. Rising energy prices helped push inflation higher in the first half, and new Fed Chair Kevin Warsh surprised markets with a notably hawkish stance at the policy meeting two weeks ago. Heading into Thursday's payrolls report, the market's debate had flipped to how often the Fed might raise rates in 2026.