Jobs Roar Back, Rate Hike Odds Spike: Markets Digest the Pivot

The August Nonfarm Payrolls report came in at a massive 162K, crushing the 56K forecast and marking the strongest monthly gain since March. Unemployment held steady at 4.1% while the underemployment rate fell to a post-June 2025 low of 7.7%, suggesting the labor market is far more resilient than bears feared. This data-driven strength gives the Fed clarity it desperately needed, and for investors, it confirms the economy isn't slipping into a recession.

The...