US October Payrolls Jump 165,000, Boosting Treasury Yields and Rate Hike Expectations

U.S. nonfarm payrolls surged by 165,000 in October, substantially beating consensus estimates of 62,000 to 65,000 and highlighting ongoing labor market resilience. The unemployment rate fell to 4.1% from 4.2%, while prior two-month revisions added a cumulative 84,000 jobs, including September's upward revision to 60,000. Average hourly earnings rose 0.4% month-over-month and 3.1% year-over-year. Strong hiring spurred expectations for Federal Reserve monetary tightening, driving the 2-year Treasury yield up to 4.52% and the 10-year yield to 4.88%. Meanwhile, S&P 500 futures gained 0.3% following the release.