U.S. March Payrolls Top Forecasts, Unemployment Rate Edges Down to 4.3%

U.S. hiring bounced back sharply in March after a weak February. The Bureau of Labor Statistics reported Friday that employers added 178,000 jobs in March, following a revised February drop of 133,000. Economists had expected a gain of 60,000. The unemployment rate slipped to 4.3% from 4.4% in February, matching consensus expectations for 4.4%. Part of the upside surprise reflected a sizable downward revision to February, which was initially reported as a 92,000 job decline. Markets showed a muted immediate reaction. Bitcoin (BTC) held near the $67,000 level, while U.S. stock index futures stayed modestly lower, with Nasdaq 100 futures down 0.2%. The 10-year U.S. Treasury yield rose four basis points to 4.36%. Rate expectations have recently been driven more by Middle East developments and crude prices than by the domestic growth outlook. As recently as last week, the surge in oil had led markets to price in near-term Federal Reserve rate hikes. Fed Chair Jerome Powell said earlier this week that oil shocks can make headline inflation look worse at first, but may also weigh on activity, suggesting the Fed would not rush to respond to short-term moves in crude. Friday's stronger-than-expected jobs report points to firmer economic momentum, potentially reviving the debate over rate hikes in 2026.