Record U.S. Payroll Revision Sparks Market Jitters as Bitcoin, Gold Slip
September 9, 2025
Markets pulled back Tuesday after the U.S. government issued its largest-ever payroll benchmark revision, revealing the labor market was far weaker than previously thought.
The preliminary update erased 911,000 jobs from official figures for the year ending March 2025. The adjustment highlights how monthly Nonfarm Payrolls reports—a cornerstone of Wall Street and Federal Reserve decision-making—had significantly overstated labor strength.
Economists suggested that if the revised numbers had been available earlier, the Fed would likely have been cutting rates throughout 2025. With its next policy meeting a week away, investors are now debating whether the central bank will opt for a 50 basis-point reduction instead of the 25 basis points markets had priced in.
Markets Reverse Course
The reaction across assets was swift but short-lived. Traders initially chased safe havens, only to unwind positions minutes later in a textbook “buy the rumor, sell the news” trade:
- Gold futures spiked above $3,700 for the first time ever, while spot prices set a fresh record at $3,670, before easing back to $3,679, flat on the day.
- Bitcoin (BTC), which briefly traded near $113,000, slid to $111,600, down about 1% over 24 hours.
- 10-year Treasury yields, threatening to break below 4% for the first time since February, instead bounced to 4.07%.
The record revision strengthens the case for monetary easing, but markets appear hesitant to extend rallies until the Fed’s rate decision is in hand.
