Stronger US jobs data lifts Fed-hike bets; equities slide
US nonfarm payrolls rose to 162k versus 55k forecast and -23k prior, pushing markets lower and boosting bets the Fed will raise rates this month.
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US nonfarm payrolls rose to 162k versus 55k forecast and -23k prior, pushing markets lower and boosting bets the Fed will raise rates this month.
US Nonfarm Payrolls rose 162k versus 55k forecast and -23k prior, boosting bets the Fed raises rates this month; stocks and bonds fell.
US Nonfarm Payrolls actual 162k versus forecast 55k and previous -23k.
Traders add to bets on Fed rate increase in September
Markets repriced after Kevin Warsh’s Jackson Hole remarks, with September Fed hike odds rising to 66.4% from roughly 36%. The two-year Treasury yield, dollar, gold, S&P 500 and TLT all moved on the shift.
Dollar index traded around 99.6 on Monday after prior-session gains. Hawkish Federal Reserve Chair Kevin Warsh remarks and stronger University of Michigan consumer sentiment supported demand, while markets increased odds of a September rate hike.
The Nasdaq 100 fell 1.7% as 30-year Treasury yields held at 5.30% and rate-hike bets eased, while the optical and AI-hardware complex sold off sharply.
A surprise contraction in US payrolls has given the stock market a break from worrying about a near-term interest-rate increase. Whether it gives small-cap stocks a durable reprieve depends on Wednesday’s inflation report. Nonfarm payrolls fell by 23,000 in July, against forecasts for an 83,000 gain. The shock drove th