Traders expected on Friday that the Federal Reserve would begin easing policy in September with a major interest rate cut of half a percentage point, after government data showed employers added far fewer jobs than expected last month, and the unemployment rate rose.
Interest rate futures markets now reflect about a 70% chance of a half-percentage-point rate cut next month, compared with what was seen before the report as a more common 70% chance of a quarter-point cut.
US stock index futures saw losses mount after a July jobs report on Friday showed the lowest number of jobs created since December 2020.
Treasury yields fell sharply, as the data offered more of a narrative to trade on US "growth worries" that hammered stock markets on Thursday.
Around 114,000 new jobs were created in July, while the unemployment rate rose to 4.3%. Economists had expected 185,000 new jobs, and the unemployment rate was unchanged at 4.1%, based on a survey conducted by The Wall Street Journal.
