BlockBeats News, September 5th. The US August employment data came in stronger than expected, prompting the market to reposition for a possible Fed rate hike. However, Wall Street's risk assets did not show significant signs of panic.

The data revealed the resilience of the job market, leading traders to increase their expectations of a rate hike at the Fed's September 16th meeting. US Treasuries saw selling pressure, the US dollar strengthened, and the S&P 500 Index fell on Friday but still ended the week with a gain.

Unlike past scenarios where rising rates triggered fund outflows, this bond market adjustment has not spread to other risk assets yet. Credit spreads remain low, and there is limited pressure on corporate bonds and equity markets. JPMorgan Chase noted a significant deterioration in US Treasuries' liquidity, but corporate bond ETFs and stock index futures have not shown similar stress. Market resilience is primarily supported by economic growth and corporate earnings, especially with AI investments driving tech companies to sustain large-scale capital expenditures.

Analysts point out that the current market is more concerned about whether yields will rise rapidly rather than just individual employment data. The next market focus will shift to inflation data and whether the Fed will reconsider its rate hike path due to inflationary pressure. If yields continue to rise sharply, investors may be forced to reduce their risk exposure.