Stocks Slump as Big Tech Sinks and a Strong May Jobs Report Boosts Odds for Higher Interest Rates
Treasury yields climbed as nonfarm payrolls rose 172,000 and unemployment held at 4.3%, strengthening expectations that the Federal Reserve will keep rates steady.
- Treasury yields jumped Friday after the Labor Department reported employers added 172,000 jobs last month, with the 10-year Treasury yield rising to 4.534%, its highest level since May 21.
- Robust labor data dimmed expectations for Federal Reserve interest rate cuts this year, with markets now pricing in a more than 60% chance the Federal Reserve will raise rates instead.
- Leisure and hospitality led growth with 70,000 new jobs. Christopher Rupkey, chief economist at Fwdbonds, wrote: "There is no argument for Fed rate cuts with the labor market this strong, and Fed officials must concentrate on the inflation risks because the economy is heating up."
- Stocks fell on Wall Street Friday as big technology companies lost ground, with The Nasdaq falling 1.6% while Nvidia dropped 3.1% and Broadcom declined 4.2%.
- The unemployment rate remained unchanged at 4.3%, while hiring stays subdued across most sectors. The broader market is headed for its first losing week in the last 10 amid these shifting economic conditions.
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61 Articles
Stock Exchange Review: Job creation far exceeded expectations in May, rekindling the fear of a further increase in the Federal Reserve rates. ...
The Sun (Lowell)
Stocks slide as Big Tech sinks and bond yields surge after a strong May jobs report
VIEW Strong May jobs number sends yields, rate expectations higher
Treasury bonds plummeted after employment growth in the United States exceeded all forecasts in May, which led operators to completely discount an interest rate rise by the Federal Reserve by the end of this year. Mass sales pushed up yields at all dues this Friday, with Treasury bonds at two years, the most sensitive to changes in US central bank policy, raising eight basis points to 4.12%. Ten-year returns rose six basis points to 4.53%.
연합뉴스-Yonhap News Agency
조선일보(New York = Yonhap News) Correspondent Lee Ji-heon = U.S. Treasury yields surged on the 5th (local time) as U.S. non-farm jobs in May showed unexpectedly strong results.
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