Stocks and treasury yields rise thanks to robust jobs report: markets are ending

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(Bloomberg) – US stocks rose on Friday after a better-than-expected increase in the US payrolls fueled expectations that the Federal Reserve is approaching a withdrawal of stimulus measures.

The S&P 500 hit a record, led by financials and materials, while the Nasdaq 100 and tech stocks fell. Job growth in the United States accelerated the most in July in nearly a year and the unemployment rate fell, illustrating the momentum of the labor market as it grapples with problems hiring.

The 10-year US Treasury yield climbed to 1.29% and the dollar strengthened against its major peers.

“Today’s payroll report highlights a meteoric labor market recovery and increases the chances that the Fed will cut back on asset purchases sooner rather than later,” said Mike Bell, global market strategist at JPMorgan Asset Management.

The report marks a further step towards the Fed’s goal of “substantial” labor market progress and raises expectations that the central bank will start cutting stimulus measures as it battles inflation well in the future. above the lens. Dallas Fed Chairman Robert Kaplan also added to the speculation on Friday, saying he would support the buying adjustment soon, but gradually.

“I imagine the Fed wants to see another good report like this, but it’s probably going to bring them much closer to the cut earlier,” said Kathy Jones, chief fixed income strategist for the Schwab Center for Financial Research. “There’s not much not to like here.”

Jobs data has shown continued momentum in the economic recovery in the United States and traders will be looking for data on price pressures next week and inflation developments ahead of the Jackson Hole Symposium more late this month.

“When you rub it all together, you have an economy that has been recovering for a year,” David Petrosinelli, senior trader at InspereX, said in a telephone interview. “I think this will force the Fed a little bit to be a little more deliberate on the language around the cut to try to calm things down.”

Reading the report could also bode well for company profits in the second half of the year, which has helped propel stocks to record highs as the economy recovers, said Matt Peron, research director at Janus. Henderson Investors.

“Friday’s jobs report was strong on almost every measure, suggesting the economy has continued its solid expansion despite recent delta fears,” he said. “Risks remain, but so far there are few signs of a significant impact from the summer wave. “

Gold fell below $ 1,800. Bitcoin rose above $ 42,000 and WTI crude oil fell. Stocks in Europe rose while stocks in Japan gained and those in China fell.

For more market analysis, read our MLIV blog.

Here are the main movements in the markets:

Actions

The S&P 500 rose 0.1% at 3:26 p.m. New York time The Nasdaq 100 fell 0.6% The Dow Jones Industrial Average rose 0.4% The MSCI World index fell 0.2%

Currencies

Bloomberg Dollar Spot Index rose 0.5% Euro fell 0.6% to $ 1.1760 British pound fell 0.4% to $ 1.3877 Japanese yen fell 0 , 4% at 110.21 per dollar

Obligations

The 10-year Treasury bill yield rose seven basis points to 1.29% Germany’s 10-year yield rose four basis points to -0.46% The UK 10-year yield increased increased by nine basis points to 0.61%

Merchandise

West Texas Intermediate crude fell 1.5% to $ 68.08 per barrel Gold futures fell 2.4% to $ 1,765.10 per ounce

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