July payrolls fall as U.S. labor market cools, denting rate-hike bets

U.S. July payrolls fell by 23,000 as the labor market cooled, with the unemployment rate at 4.1% and wage growth slowing to 0.1% month-over-month (3.2% year over year), below the 3.5% inflation rate. May and June gains were revised down by a combined 103,000, with losses led by local government education, retail and leisure/hospitality, while health care, manufacturing and construction posted gains. Markets rallied on softer data, sending yields lower and reducing odds of an imminent Fed rate hike.