Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 dips, Treasury yields rise and dollar rallies following robust U.S. jobs report

Stock Markets Aug 05, 2022 04:52PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. FILE PHOTO: Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB) gasoline, CARB diesel fuel, and other petroleum products, in Carson, California, U.S. 2/3

By Stephen Culp

NEW YORK (Reuters) - The S&P 500 headed lower, Treasury yields advanced and the dollar rose on Friday after the U.S. July employment report blasted past expectations, raising the odds of continued monetary tightening from the Federal Reserve.

Wall Street pared losses as the session progressed. At close, the Nasdaq joined the bellwether index in the red and the blue-chip Dow reversed course to end in positive territory. [.N]

Benchmark U.S. Treasury yields and oil prices headed higher as the stronger-than-expected payrolls data appeared to confirm the economy is not yet in recession, which increased the likelihood of more aggressive rate increases from the Fed in September.

The employment report "telegraphed some work needs to be done on the Fed’s side, regarding their interest rate policy," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts. "That was certainly the market’s initial reaction."

The Labor Department's employment report showed the U.S. economy added 528,000 jobs in July, more than double the 250,000 expected, while wage inflation remained hot and the participation rate edged lower.

"The payrolls number are wonderful from a demand standpoint, more people being paid is great for the economy," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.

Evidence of economic strength helped ease risk aversion as the week drew to a close.

"The employment data raises the prospect of a soft landing," Keator said, adding that Fed Chair Jerome Powell has "pointed to the fact that a strong labor market has not historically accompanied recessions."

The Dow Jones Industrial Average rose 76.65 points, or 0.23%, to 32,803.47, the S&P 500 lost 6.75 points, or 0.16%, to 4,145.19 and the Nasdaq Composite dropped 63.03 points, or 0.5%, to 12,657.56.

European shares fell after the U.S. jobs data stoked expectations of continued hawkish Fed policy.

The pan-European STOXX 600 index lost 0.76% and MSCI's gauge of stocks across the globe shed 0.20%.

Emerging market stocks rose 0.75%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.61% higher.

U.S. Treasury yields rose and a closely watched part of the yield curve touched its deepest inversion since August 2000 on increased odds of another 75 basis point interest rate hike from the central bank in September.

Benchmark 10-year notes last fell 42/32 in price to yield 2.8287%, from 2.676% late on Thursday.

The 30-year bond last fell 65/32 in price to yield 3.0662%, from 2.961% late on Thursday.

The dollar rallied against a basket of currencies in the wake of the employment report.

The dollar index rose 0.84%, with the euro down 0.63% to $1.0178.

The Japanese yen weakened 1.57% versus the greenback at 135.02 per dollar, while sterling was last trading at $1.2067, down 0.74% on the day.

While crude prices advanced on the prospect of strong demand, they wrapped up the week near multi-month lows due to lingering recession fears.

U.S. crude rose 0.53% to settle at $89.01 per barrel, while Brent settled at $94.92 per barrel, up 0.85% on the day.

Gold dipped as waning recession fears tarnished the safe-haven metal's luster.

Spot gold dropped 1.0% to $1,772.82 an ounce.

S&P 500 dips, Treasury yields rise and dollar rallies following robust U.S. jobs report
 

Related Articles

Sanofi Knee-Jerk Reaction 'Overdone' - Deutsche Bank
Sanofi Knee-Jerk Reaction 'Overdone' - Deutsche Bank By Investing.com - Aug 12, 2022

By Sam Boughedda Shares of Sanofi (NASDAQ:SNY) were upgraded to Hold from Sell with an unchanged EUR90 price target by a Deutsche Bank analyst on Friday. Sanofi shares have...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Jamie An
Jamie An Aug 05, 2022 7:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Who care EU stock? Only Nasdaq will up up up forever. We are in rally and nothing can stop it.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email