The U.S. economy added 165,000 nonfarm payroll jobs in October, more than twice economists’ expectations, while the unemployment rate ticked down to 4.1%, strengthening the case for further Federal Reserve interest rate hikes and complicating hopes for rapid easing. Futures had placed the probability of a quarter-point December rate increase at roughly 75% to 80%, up from about two-thirds before the employment report, although earlier estimates put the range at 76% to 79%. Professional and business services added 70,000 jobs, while healthcare and transportation and warehousing also gained employment; August and September payroll increases were revised up by a combined 84,000. Average hourly earnings rose 0.4% in October and 3.1% over 12 months. The report came after a post-election stock market selloff and growing concerns that weaker AI-driven demand could undermine the economy. The November 10 Consumer Price Index report will be an important test for rate expectations, alongside future employment revisions and Federal Reserve communications. September annual inflation accelerated to 3.7% from 3.4% in August, monthly prices rose 0.6%, and producer prices increased 6.3% year over year. San Francisco Fed President Mary Daly and St. Louis Fed President Alberto Musalem have emphasized inflation and price stability. Higher yields could pressure technology stocks, AI-infrastructure investment and cryptocurrencies, although Bitcoin’s market performance also reflects liquidity, leverage, derivatives positioning, equity volatility and crypto-specific developments. NewsBTC reported $398.6 million in net withdrawals from spot Bitcoin ETFs on November 2, illustrating that fund flows can change and do not explain every investor decision. Existing concerns about housing, weak real-wage growth, savings, equity valuations, productivity and business investment remain relevant to the longer-term rate outlook.