US June Jobs Report Shows Slower Payroll Growth, Influencing Fed Policy Expectations

U.S. nonfarm payrolls increased by a slower-than-expected 57,000 jobs in June, significantly below forecasts, while the unemployment rate edged down to 4.2%. Average hourly earnings rose 0.3% for the month and 3.5% year-over-year. This softer labor market data is leading to expectations of reduced pressure for further Federal Reserve tightening and increased odds of rate cuts later in the year.