May jobs rise narrows Fed rate-cut odds, pressures crypto, tech
U.S. nonfarm payrolls rose 172,000 in May, unemployment held at 4.3% and March‑April payrolls were revised up by 93,000, reducing near-term Fed rate-cut expectations and pressuring crypto and growth tech.
The U.S. economy added 172,000 nonfarm payrolls in May 2026, the Labor Department reported, while the unemployment rate remained at 4.3%.
Private payrolls increased by 120,000. Average hourly earnings rose 0.3% month-on-month and 3.4% year-on-year. The average workweek measured 34.3 hours. The number of people counted as unemployed fell by 66,000 to 7.31 million and the labor force participation rate was 61.8%.
Payroll figures for March and April were revised upward by a combined 93,000 jobs, with March revised up by about 64,000 and April by about 29,000. Most of the May hiring occurred in leisure and hospitality, local government and health care.
Financial markets reacted to the report by reducing the probability of an early Federal Reserve rate cut and by pushing Treasury yields higher. Futures tied to Fed policy reflected a lower chance of a near-term reduction in the federal funds rate.
Cryptocurrency markets experienced downward pressure after the release. Market participants pointed to higher yields, recent ETF outflows and episodes of forced liquidations as factors affecting Bitcoin, Ethereum and smaller tokens.
High-growth technology and AI-linked stocks also faced selling as investors adjusted expectations for interest rates. Higher discount rates reduce the present value of expected future earnings, a key element in valuations for these firms.
Investors and analysts said they will monitor upcoming inflation reports, public comments from Federal Reserve officials and the next jobs releases for further indications on the timing of monetary policy changes.
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