Traders bet Fed won't raise interest rates until 2017

Before the report traders had been betting the Federal Reserve will raise rates in December. They now see the Fed's February meeting as the first time where policymakers are more likely to raise rates than stand pat.

In April the U.S. economy added 160,000 jobs, the fewest number in seven months, and more Americans dropped out of the labor force, the jobs report showed.

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)