Non-farm payrolls significantly exceeded expectations + unemployment rate declined + wages exceeded expectations → Fed leans hawkish This aligns with our first point. While strong non-farm payrolls will reinforce expectations of a rate hike, these expectations are already in place, so it may not be particularly alarming. Therefore, the current issue is that US employment hasn't suddenly collapsed; the key question is how long the Fed can maintain its tight monetary policy. Short-term negative, but once the Fed raises rates, it will be positive.