Hiring across the U.S. slowed in April, a sign the Federal Reserve’s efforts to shackle economic growth and curb inflation is chilling the labor market.

American employers added 175,000 jobs last month, well below expectations of roughly 232,000 and off dramatically from the blockbuster job creation in March, when employers added a surprising and upwardly revised 315,000 jobs.

The nation’s unemployment rate was little changed at 3.9%, continuing a 27-month stretch of remaining below 4%, the longest since the 1960s, the U.S. Department of Labor said Friday.

The smallest increase in payrolls in six months allayed concerns that an overly hot economy would prevent the Federal Reserve from cutting interest rates later this year.

Wall Street applauded the report, with stocks sharply higher and bond yields falling.