Today the latest US jobs report was released with an additional 263k jobs added to the economy.

This normally is a good thing but stock markets reacted poorly with the SPX down nearly 2% as of 11 am EDT. Crypto markets are reacting similarly with Bitcoin and Ethereum both down just over 2%.

Why would an increase in productivity with more jobs lead to a declining stock market? In short, it's fear of the fed and another aggressive interest rate hike. 

To explain more, traders see the growth in the jobs market as a key sign that the economy is still too hot from inflation. This will likely force another 75 BPS or 100 BPS rate hike at the next fed meeting and thus, traders response to this latest job report has been bearish. A bit counter initiative at a glance but hopefully this makes more sense now within the context of high inflation and seemingly ever-increasing interest rate hikes. 

What do you think about this response? Does it make sense to you or do you disagree?