The US October jobs report was quite strong. Non-farm payrolls increased by 165,000, compared to market expectations of only 75,000; the combined employment figures for the first two months were revised upwards by 84,000. The unemployment rate fell from 4.2% to 4.1%; wages rose 0.4% month-over-month and 3.1% year-over-year, while market expectations were 0.3% month-over-month and 2.9% year-over-year. This undoubtedly provides strong support for a Fed rate hike in December. In the preceding days, market expectations for a rate hike had declined, with the probability of a hike approaching 50/50. Current market pricing indicates a 20 basis point rate hike is expected at the December Federal Open Market Committee (FOMC) meeting, and we believe the Fed will implement this rate hike at that time. Detailed data shows that private education and healthcare services remained the main drivers of job growth, adding 53,000 jobs. Meanwhile, the manufacturing sector saw a substantial recovery, adding 19,000 jobs, and the competitiveness of some US-made products continued to improve. Stable and relatively low energy supplies, a robust economy, large-scale investment in technology, and the marginal effect of tariffs have all contributed to a boost in the manufacturing sector. After three consecutive years of job losses in manufacturing, the sector added 86,000 jobs in the past five months. Other sectors that performed well included temporary workers (19,000 new jobs) and transportation and warehousing (25,000 new jobs). The leisure and hospitality sector lost 13,000 jobs, and the construction sector lost 3,000 jobs. (Chart: Cumulative Job Additions Since December 2022 (Unit: 1,000s)) The Federal Reserve is expected to raise interest rates in December, followed by a prolonged pause. The Fed is currently more focused on its inflation target, a key part of its policy mandate, but the strong performance of the job market remains a crucial basis for its rate hike logic. While we anticipate a December rate hike, we believe further increases are unlikely next year. Recent market expectations have also shifted towards this view: the market is no longer fully pricing in more rate hikes in 2027. The underlying reason is likely the significant drop in energy prices, which has eased market concerns about a second round of price transmission effects. Next week's CPI report is expected to show a 0.2% month-on-month increase in core CPI, which may confirm the above assessment.