1. The unemployment rate dropped to 4.2%, its lowest level since the pandemic. Economists had been looking for a more modest improvement, but the uptick in the participation rate tells us that this was not a reflection of workers dropping out of the labor force.
2. In total, the U.S. economy has recovered more than 80% of the jobs lost since the pandemic.
3. Federal Reserve rate hike expectations remained intact, with the futures market pricing in 25bp hike in June and 50bp hike in November.