The non-farm data triggered a reset of global capital preferences, putting short-term pressure on risk assets.
The better-than-expected non-farm data led to a chain reaction in global financial markets by altering interest rate expectations.
US Dollar and US Treasuries: After the data was released, the dollar index rose sharply as the market anticipated that the Federal Reserve might maintain high rates for a longer period. However, due to the mixed signals within the data, the dollar's upward momentum did not last. The bond market reflected complex expectations, with yields fluctuating after the data announcement.
US stocks faced a sell-off: Interest rate-sensitive high-valuation tech stocks were the first to be hit, with the Nasdaq index experiencing a significant drop. However, signals from the options market indicated that some institutional investors began to actively buy call options, which may suggest that some investors believe the market is nearing a short-term bottom, and sentiment is improving.
Cryptocurrency affected: As an emerging risk asset, the cryptocurrency market faced a sell-off. Bitcoin and Ethereum prices dropped significantly. In addition to the impact of declining interest rate expectations, there has also been a large outflow of capital from the recent spot Bitcoin ETF, further exacerbating the downward trend.
