Stronger-than-expected employment figures push Treasury yields higher as traders price in prolonged elevated rates.
A robust U.S. jobs report sent Treasury yields climbing, with the 2-year yield rising 10 basis points to 4.151% and the 10-year yield up 6 basis points to 4.537%. Markets interpreted the data as a sign that a resilient labor market and persistent inflation could delay Federal Reserve rate cuts.
The report exceeded expectations, reinforcing concerns about sticky inflation despite White House officials downplaying inflation risks. NASDAQ bore the brunt of the selloff, dropping 2% to 26,294.95, distancing itself from its 100-hour moving average at 26,569. The S&P 500 also tested its 100-hour moving average at 7,502.51.
Equities retreated as higher yields increased borrowing costs, with traders recalibrating expectations for Fed policy. The divergence between market reactions and White House optimism highlights tensions over inflation and growth outlooks.