U.S. July jobs miss cuts Fed September hike odds

The U.S. unexpectedly lost jobs in July, sharply reducing investor odds that the Federal Reserve will raise interest rates at its September meeting. Prediction markets put odds of a hold at about 65%; CME FedWatch showed 60%, up from 45% Thursday. Treasury yields fell and stocks rose. A weaker labor market weakens the case for hikes some Fed members backed amid higher energy prices from the U.S.-Iran war. Next week's July Consumer Price Index remains key; hotter inflation could still prompt action. Despite September odds, CME sees 55% chance of a hike in October and nearly 75% in December.