US hiring and labor-market data released for July lead markets to cut their expectations for a Federal Reserve rate hike in September, according to reports citing rate-futures pricing. After the jobs report, futures markets price less than even odds of a September increase in the Fed’s target rate, with the probability of tightening falling versus levels seen before the data. One account notes that the likelihood of a rate hike drops to about 43.9% after the report, from about 57% beforehand, based on LSEG data. The chance the Fed holds rates at its next meeting rises to about 60.4% from about 43.2% prior to the report. The underlying data shows the US economy loses 23,000 jobs in July, while the unemployment rate edges down to 4.1% from 4.2% in June. Analysts cited in the coverage say the unemployment decline is influenced by fewer workers participating in the labor force, which makes the job-market picture less robust than the headline unemployment figure suggests. The reports also reference a prior week of commentary from Fed officials about tackling stubborn inflation, but the new data shifts near-term market expectations about Fed policy.