US Stocks Fall as Jobs Data Adds to Rate Hike Nerves | Financial markets news

The Federal Reserve is expected to keep a firm grip on monetary policy amid a still tight labor market.

For Bloomberg

Stocks tumbled after US jobs data tightened the Federal Reserve’s firm grip on monetary policy amid a still-tight labor market and wages near stubbornly high levels, a long-standing source of inflationary pressures.

The S&P 500 pushed lower, heading for its fifth straight week of losses, the longest losing streak since June 2011. The tech-heavy Nasdaq 100 underperformed major equity benchmarks . 10-year Treasury yields topped 3%, while the dollar faltered.

Nonfarm payrolls rose 428,000 in April, but a smaller workforce may pressure employers to raise wages and bring back workers. That dynamic is likely to complicate the Fed’s struggle to rein in decades-high inflation as central bankers work to align labor demand with supply. The participation rate, the proportion of the population working or looking for work, plummeted. While average hourly earnings fell short of economists’ monthly estimates, they were up 5.5% from a year earlier.

Fed Chairman Jerome Powell said on Wednesday that he was concerned about wages rising at an unsustainable rate. Wage gains that track productivity gains are great, in the view of many central bankers, but gains that are out of line could suggest spiraling out of control.

The global market sell-off that saw the S&P 500 post its worst first four months of the year since 1939 has yet to continue, according to Bank of America Corp. strategists led by Michael Hartnett. “Base case remains equity low, yield highs not yet reached,” they wrote in a note to clients.

Some of the main movements in the markets:

Stocks

  • The S&P 500 fell 1.8% at 10:03 a.m. New York time.
  • The Nasdaq 100 fell 2.2%
  • The Dow Jones Industrial Average fell 1.5%
  • The Stoxx Europe 600 falls 2.6%
  • The MSCI World Index fell 1.9%

coins

  • The Bloomberg Dollar Spot Index was little changed
  • The euro was up 0.4% at $1.0581.
  • Sterling fell 0.2% to $1.2335.
  • The Japanese yen was little changed at 130.30 per dollar

Captivity

  • The 10-year Treasury bond yield advanced two basis points to 3.06%.
  • Germany’s 10-year yield advanced five basis points to 1.10%
  • Britain’s 10-year yield fell two basis points to 1.94%

raw Materials

  • West Texas Intermediate crude rose 0.2% to $108.53 a barrel.
  • Gold futures rose 0.4% to $1,882.70 an ounce.

–With the assistance of Sunil Jagtiani, Cecile Gutscher, Denitsa Tsekova and Vildana Hajric.

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