- U.S. employers added 172,000 jobs in May, beating forecasts and showing continued labor market strength.
- Payroll revisions added 93,000 jobs to prior months, signaling stronger hiring than initially reported.
- Strong jobs data contrasted with weakness in tech stocks, crypto markets, and ongoing inflation concerns.
The Kobeissi Letter said the U.S. economy added 172,000 jobs in May, well above expectations of about 85,000. In a post on X, it described the result as a strong upside surprise and said the unemployment rate held at 4.3%, in line with forecasts. It also noted that April’s job gains were revised higher by 64,000 jobs.
Data from the U.S. Bureau of Labor Statistics showed a similar picture, with employers adding 172,000 jobs during the month. The report also revised March and April payrolls higher by a combined 93,000 jobs. The Kobeissi Letter said the revisions suggested hiring had been stronger than earlier estimates indicated.
Hiring Momentum Remains Broad-Based
The latest figures arrived as inflation pressures and Middle East tensions continue to cloud the economic outlook. However, employers maintained hiring activity across much of the economy. Earlier this week, the Labor Department reported that job openings increased to 7.6 million in April. Additionally, layoffs and voluntary quits changed little, indicating stable workforce conditions.
Private employers added 122,000 jobs in May, according to ADP. The payroll firm found hiring activity across businesses of nearly every size and sector. Only the information and natural resources industries showed weakness. Dr Nela Richardson, ADP’s chief economist, said, “Hiring was more broad-based in May than we’ve seen in the last few years. The labor market continues to show sustained momentum going into the summer hiring season.”
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Fed, Markets and Global Risks in Focus
The jobs report marked the first major labor market release under Federal Reserve Chair Kevin Warsh, who took office last month. Economists still expect the Fed to leave interest rates unchanged at its June meeting. However, President Donald Trump and his advisers continue pushing for rate cuts to support growth.
Financial markets moved in different directions on Thursday as technology stocks led losses while other sectors gained ground. The Nasdaq dropped more than 340 points at the open, weighed down by weakness in chipmakers. Broadcom, Micron Technology, and CrowdStrike all extended their declines.
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At the same time, investors shifted some money into banks and other cyclical stocks, looking for alternatives outside the artificial intelligence trade. Oil prices stayed high near $95 a barrel as ongoing supply risks linked to global conflicts kept markets on edge.
Higher energy costs added to concerns about inflation and slower economic growth. In digital assets, the pressure also continued. CoinMarketCap data showed Bitcoin fell more than 14% this week, while Ether dropped to its lowest level since April 2025.
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