Fresh U.S. jobs data is making waves in global financial markets, offering a sign that the Federal Reserve may have room to hold off on further interest rate hikes.

The latest report showed moderate job growth and a slight uptick in unemployment, suggesting that the labor market is cooling in a controlled manner — a trend that aligns with the Fed’s soft-landing goal of slowing inflation without triggering a recession.

Markets responded positively, with equities rising and bond yields dipping as traders adjusted expectations for future monetary tightening. The report has also had ripple effects abroad: central banks in Europe and Asia are now reassessing their own rate trajectories in response to the Fed’s potentially more dovish stance.

“This jobs report reduces urgency for aggressive Fed action,” said global economist Mira Patel. “It sends a message of stability that many economies were hoping for.”

Meanwhile, oil prices remained steady and the dollar softened slightly, reflecting increased investor optimism and a possible shift toward more accommodative policies globally.

As inflation cools and labor conditions stabilize, policymakers worldwide are watching the U.S. closely — still the bellwether of the global economy.