[Wall Street Sharp Commentary on Nonfarm Payrolls: This Report is 'Extremely Frightening'!] BlockBeats News, August 8—Just as the market was bracing for the Federal Reserve's next policy direction, the U.S. July nonfarm payrolls report released yesterday landed like a heavy blow, shattering the illusion of robust economic growth. Data showed that not only did the U.S. economy fail to achieve the expected 80,000 job increase in July, but it also saw a significant reduction of 23,000 jobs. This shocking figure, combined with a downward revision of 103,000 jobs for May and June, has instantly ignited Wall Street's concerns about a cooling labor market. Analysts are divided in their interpretations of this "terrible" report. Thomas Ryan, Senior Economist at Capital Economics, bluntly stated that although the current weakness has yet to manifest in broader indicators, it is enough to prompt Federal Reserve officials to reassess the health of the labor market and reduce their willingness to tighten monetary policy further in the short term. Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments, similarly believes that such seasonal fluctuations typically reverse in the fall, and the underlying job creation remains weakly positive. This report undoubtedly adds ammunition to the Federal Reserve's dovish camp. Ellen Zentner, Chief U.S. Economist at Morgan Stanley Wealth Management, analyzed that the weak employment data indeed eases the pressure for a rate hike in September, but she warned that the Fed's decision-making is not a single-variable function. If next week's inflation data exceeds expectations, even a cooling labor market may not quell internal calls for rate hikes. Faced with this report, which Adam Crisafulli, founder of Vital Knowledge, described as 'extremely frightening,' the capital markets exhibited a typical reverse logic. As traders bet that the rate hike cycle would come to a halt, U.S. stock futures surged, and Treasury yields collectively declined. According to CME tools, the market's expectation for a September rate hike has quickly dropped from 55% on Thursday to 44%. [Original Link]