US Payroll Creates 162,000 Jobs as Ibovespa Rallies from Initial Drop to Gain
Strong US employment data drove market volatility, pushing the Federal Reserve's rate hike probability to 58.4% while the Brazilian Ibovespa recovered from a near-1% loss.
United States payroll figures released this Friday significantly exceeded expectations, generating 162,000 new jobs in August against forecasts of 55,000. This stronger-than-anticipated growth increased the probability that the Federal Reserve will raise interest rates by 0.25 percentage points in September to 58.4%. Domestically, the unemployment rate remained stable at 4.1%, and average hourly earnings grew by 0.3%.
In Brazil's stock market, the Ibovespa index initially fell 1.08% to close at 183,251 points shortly after the data release. However, the market reversed its course during the morning session. The index recovered all losses and closed higher at 185,375 points, a gain of over 3,200 points from its daily low. By late afternoon trading, the index was rising by just 0.10%. Experts attribute this rebound to domestic economic factors and strong performance by major Brazilian stocks, despite deteriorating expectations for US rate hikes.
