Non-farm payroll data confirms Waller and Bowman's case for rate cuts: labor market shows signs of weakness

U.S. labor market data bolstered calls for monetary easing, sending Treasury yields and the dollar lower. The 10-year Treasury yield was 4.295%, and the 2-year Treasury yield was 3.801%. U.S. jobs added only 73,000 in July. The unemployment rate edged up from 4.1% to 4.2%. Meanwhile, previous data were significantly revised downwards: May's job gains were revised down from 144,000 to 19,000, and June's gains were revised down from 147,000 to 14,000. Before the jobs report was released, dissenting Federal Reserve Governors Waller and Bowman signaled signs of labor market weakness. The stock market plummeted in response to the jobs data.