Stocks, bitcoin react to BLS' July payroll report

Stocks, bitcoin react to BLS' July payroll report

The U.S. Bureau of Labor Statistics BLS released its non-farm payroll showing employment had increased by 528,000 in July. Wall Street expected a 258,000 increase, more than twice that amount.

The U.S unemployment rate is now at 3.5%, beating analysts expectations of a 3.6% unemployment rate.

Stocks andBitcoin initially reacted negatively after the news.

July Average Hourly Earning went up 5.2% year-over-year, beating expectations of a 4.9% increase.

The job numbers were a surprise, according to Tom Kozlik, head of municipal research and analytics at HilltopSecurities. He said there isn't yet a recession. More aggressive action from the Fed is likely to come as well. On July 27, the Fed passed its second consecutive 75 basis point hike, taking the benchmark rate to 2.25% -- 2.5%. CNBC reported that this was the most stringent consecutive action since the early 1990s.

Many expected the central bank to enact a lower rate increase in the 25 50 basis-point range after the FOMC meeting, which is scheduled for Sept. 20 - 21.

The Fed will likely go harder with another 75 basis point hike because of the red hot labor market's news of a red hot labor market. Analysts believe that a 70% chance that it will happen when Fed officials reconvene after the summer break.

The 13: 00 GMT hourly candle saw a 2% swing to the downside after the news. A local bottom of $22,800 was reached, fuelling a fightback from bulls to take BTC almost level to the high point of the 13: 00 candle.

The Dow Jones, S&P 500, and Nasdaq are all in a slight sell-off. The Fed will have to act and clamp down harder on the overheating economy because of the news.