U.S. June Unemployment Rate Hits 4.2%, Market Cuts Rate-Hike Bets

According to a China Securities research note cited by Jin10 on July 3, the U.S. unemployment rate in June 2026 came in at 4.2%, below expectations, while non-farm job additions also disappointed. The leisure and hospitality sector, a key contributor in May, became a drag in June data, though underlying employment in the industry remained positive before seasonal adjustment. Wage growth remained elevated, suggesting persistent inflation. Following the data release, markets pared back interest rate hike pricing; however, China Securities believes market expectations for rate increases still have room to decline, maintaining its view that the Federal Reserve will keep rates unchanged through year-end.
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