The U.S. added 165,000 jobs in October, far exceeding forecasts of 59,000, while unemployment edged down to 4.1% and annual wage growth held at 3.1%.

The strong report offered a bright spot after the Nasdaq plunged 5.5% and the S&P 500 fell 4.3% in their worst one-day declines since the April 2025 market shock, wiping out $2.5 trillion in market value.

Earlier estimates were also revised upward by a combined 84,000 jobs for August and September, with gains in healthcare, transportation, warehousing and manufacturing.

Economists called October’s hiring unusually strong, but said the labor market has largely remained “low-hire, low-fire”: employers are holding on to workers while hiring cautiously, making it tougher for young people and displaced workers to find jobs.

Even as hiring strengthened and layoffs remained subdued, people who lose their jobs are taking longer to find work; excluding the brief COVID-19 surge, median unemployment duration reached 11.9 weeks and the average was 27.1 weeks, both the highest in about a decade.

Investment in data centers and AI infrastructure supported construction and manufacturing employment, including the biggest gain in four years for computer and electronic product manufacturers, although economists said AI adoption has been associated with weaker job growth and higher unemployment in nonmanufacturing industries.

Worker availability has also shrunk as baby boomers retire and more restrictive immigration policies reduce the number of immigrant workers, though the trend could change.

The stronger data led traders to raise the odds of a quarter-point Federal Reserve rate increase at the December 8–9 meeting to about 77%; Treasury yields rose, while stock futures were mixed.

A December hike or a longer stretch of elevated rates could weigh on technology-stock valuations and borrowing-dependent AI investment, while higher borrowing costs may also delay mortgage-rate relief.

The jobs report landed as Ether traded around $2,236, down 6.4% on the day and at its lowest level since August; outflows from U.S. spot Ether ETFs added pressure, and the token had fallen about 13% over 30 days.

Bitcoin also slid, trading around $75,800 and down 5% over the previous day, as higher-rate expectations made safer assets more attractive and pressured growth-oriented investments.

The report’s effect on Bitcoin depends on the rate outlook: weaker employment data could have supported the cryptocurrency by reinforcing expectations of stable or lower rates, while stronger data risks tighter financial conditions.