Stronger-than-expected U.S. payrolls data lifts Treasury yields, pressuring tech stocks and pushing the NASDAQ below technical support levels.
U.S. stock indices diverged Friday after a robust jobs report sent Treasury yields sharply higher. Nonfarm payrolls surged by 172K in July, surpassing the 85K estimate, while revisions added 93K jobs to prior months. The unemployment rate held at 4.3%, and wage growth met expectations at 0.3% month-over-month and 3.4% year-over-year.
The data reinforced labor market resilience, dampening hopes for near-term Fed rate cuts. The 2-year Treasury yield rose 10 basis points to 4.15%, and the 10-year yield climbed 6.7 basis points to 4.542%. Rising yields weighed on equities, particularly growth-heavy tech stocks, driving the NASDAQ lower.
Technically, the S&P 500 held above its 100-hour moving average, but the NASDAQ gapped below it, extending losses. The divergence leaves traders balancing stronger economic data against unbroken support levels.