US Loses 23,000 Jobs in July, Unemployment Rate Falls

• US July Nonfarm Payrolls fell by 23,000, against an estimated gain of 80,000.
• The unemployment rate dropped to 4.1% from an estimated 4.2%, while average hourly earnings rose a modest 0.1% M/M.
• Bond yields (2-year, 10-year, 30-year) fell, and equity futures (S&P, Nasdaq, Russell) rose, indicating market belief in a less aggressive Fed.

The US July jobs report showed an unexpected decline of 23,000 nonfarm payrolls, significantly missing the +80,000 estimate, with previous months also revised lower. Despite the job losses, the unemployment rate fell to 4.1%. Financial markets reacted positively, with equities rising and bond yields falling, as traders pared bets on future Fed rate hikes due to signs of a weakening labor market and disinflation.