Following the announcement of stronger-than-expected U.S. jobs statistics, Treasury rates increased, which caused Friday’s decline in U.S. stock futures.
Futures for the Dow Jones Industrial Average fell 206 points, or 0.7%. Futures for the S&P 500 and Nasdaq 100 declined by 1% and 1.2%, respectively.
170,000 jobs were predicted by economists surveyed by Dow Jones. Undoubtedly, salary growth last month was less than anticipated.
A 16-year high was reached earlier this week, and the benchmark 10-year Treasury yield increased by more than 12 basis points to trade close to it.
Investors are worried that the Federal Reserve will need to maintain higher rates for a longer period of time to control inflation in response to Friday’s jobs report.
The 336K figure is “monstrous,” according to Adam Crisafulli of Vital Knowledge, who also wrote a note. “The Fed could easily move another 25bp and maintain at an elevated level for a lengthy period.” “Rates will continue to be exposed to upside risks, and stocks won’t have a chance at that time.”
Source (CNBC)
