US nonfarm payrolls cool to 150,000 jobs added

The US economy begun to show its first cracks as its unemployment rate climbed to 3.9%, whilst nonfarm payrolls increased modestly to 150,000, a downward shift from the 297,000 in September. The US services sector also expanded at the weakest pace in five months, with wage growth also slowing. The current signs of a cooling labour market and a contraction in services support the narrative that the Federal Reserve has reached peak rates. Two-year treasury yields declined to 4.87% (price goes up, yields come down), and 10-year treasury yields retreated to 4.52%. The latest US economic data show that interest rates are helping cool activity, without causing huge dents to the economy so far. As such, helping revive the possibility of a ‘soft landing.’