US Jobs Surge in October, Raising Odds of December Rate Hike

The U.S. added 165,000 nonfarm payroll jobs in October, far exceeding the Dow Jones estimate of 59,000, while the unemployment rate fell to 4.1% from 4.2%, boosting expectations for a December interest rate hike. The broader unemployment rate, including discouraged workers and those working part-time for economic reasons, rose to 7.9%. August and September job figures were revised upward significantly, and average hourly earnings grew 0.4% monthly and 3.1% annually, both beating forecasts. Job growth was broad-based, led by professional and business services. Following the report, traders raised the probability of a Federal Reserve rate hike in December to 76.8%, though further increases may be limited amid midterm election results and recent tech stock selloffs.