The US economy added 147,000 jobs in June, surpassing expectations of 110,000 and easing fears of a slowdown. The unemployment rate dipped to 4.1%, and prior months' figures were revised upwards, reflecting underlying labour market strength. However, the headline number was flattered by a jump in state government employment, while labour force participation fell, suggesting fewer people actively seeking work. Markets quickly scaled back expectations of an imminent interest rate cut by the Federal Reserve, with bets on a July cut now near zero. The dollar rose 0.5% against peers, and two-year Treasury yields climbed to 3.87%, reflecting diminished chances of rate relief. US stock futures gained modestly.