Fed rate hike odds jump to 77% after strong October jobs report

Traders raised the probability of a Federal Reserve interest rate hike in December to 77%, up about 10 percentage points since Thursday, following a stronger-than-expected October jobs report showing a resilient US labor market. The Labor Department reported 165,000 jobs added in October, more than double the 65,000 expected, while unemployment fell to 4.1% from 4.2% and average hourly wages rose 0.4% month-over-month. Fed officials, including Cleveland Fed President Beth Hammack, signaled further tightening may be needed to control inflation. The strong data pushed the 10-year Treasury yield up four basis points to 4.88%. Annual wage growth of 3.1% remains below inflation for a seventh straight month, complicating the outlook as investors monitor inflation, employment, and energy prices for the Fed's next move.