The U.S. labor market exceeded expectations in April, with 177,000 jobs added, marking a strong performance amidst ongoing global challenges. According to the latest Bureau of Labor Statistics data, economists had predicted a more modest increase of 130,000 jobs, making the actual number a significant surprise.

The national unemployment rate remained unchanged at 4.2%, consistent with predictions and maintaining the trend of stability in the job market. Despite the solid jobs report, Bitcoin experienced a small pullback, retreating to $96,600 after trading at higher levels earlier in the week. The cryptocurrency’s minor decline is attributed to recalibrated expectations regarding the Federal Reserve’s upcoming policy actions, as the job numbers imply less urgency for rate cuts.

Following the jobs report, U.S. stocks showed a positive reaction, with Nasdaq and S&P 500 futures both climbing by 0.6% in early trading, supported by optimism surrounding the continued strength of the labor market.

The stronger-than-expected job growth will likely influence the Federal Reserve’s approach to interest rates. While markets had priced in a 60% chance of a rate cut by June, the latest data may prompt investors to reconsider the likelihood of such a move in the near term.

The U.S. 10-year Treasury yield increased by 4 basis points, rising to 4.29% following the job report, reflecting a shift in market expectations regarding the Fed’s next steps.

Additionally, average hourly earnings grew by 0.2% in April, slightly missing the anticipated 0.3% increase, while the year-over-year wage growth held steady at 3.8%, in line with March’s reading.