Global Markets-Yields rise, stocks mostly ease after solid U.S. jobs report
SPY•Markets ease as Treasury yields and dollar rise
Treasury yields and the dollar rose, while the S&P 500 eased on Friday after U.S. job growth accelerated in August and the unemployment rate held steady.
The monthly report suggests the labor market remains stable and raised expectations that the U.S. Federal Reserve will raise interest rates later this month, as investors look ahead to next week's consumer inflation as key to that determination.
Nonfarm payrolls rose by 162,000 jobs last month after an upwardly revised rise of 21,000 in July. Economists polled by Reuters had forecast an increase of 56,000 after a previously reported drop of 23,000 in July.
Rates, oil, stocks and currencies move after the data
The yield on benchmark U.S. 10-year notes was last up 1.21 basis points at 4.774%. It was at 4.792% just after the report. Two-year yields hit their highest since January 2025.
"In the Fed’s eyes, the labor market is holding up, which means inflation remains the bigger problem," said Bret Kenwell, U.S. investment analyst at eToro in New York.
"Next week’s CPI report will be closely watched with the Fed’s interest-rate decision looming in mid-September."
Short-term interest-rate futures now imply about a 65% chance for a hike at the Fed's September 15 to 16 meeting, up from about 55% before the report.
Oil prices slipped from recent highs. Renewed attacks in the U.S.-Iran war this week have sparked a jump in oil prices, adding to existing worries about higher costs.
U.S. crude CLc1 was down 1.6% to $89.87 a barrel and Brent LCOc1 lost 1.3% to $94.26 per barrel.
The Dow Jones Industrial Average .DJI fell 98.46 points, or 0.19%, to 53,587.65, the S&P 500 .SPX fell 6.06 points, or 0.08%, to 7,741.65 and the Nasdaq Composite .IXIC rose 17.02 points, or 0.06%, to 26,601.08.
