By Medha Singh and Twesha Dikshit June 5 Wall Street’s main indexes fell on Friday as stronger-than-expected jobs data pushed Treasury yields higher and reinforced hawkish policy bets, while chipmakers slid after a recent rally.
Nonfarm payrolls rose by 172,000 jobs in May after 115,000 additions in April
The increase was much higher than the 85,000 forecast by a Reuters survey of economists. Yields on U.S. Treasuries, which move inversely to prices, jumped as traders factored in with near certainty that the U.S.
Federal Reserve will hike interest rates by 25 basis points before the end of the year. Money markets had expected a 60% chance of tightening before the data. The data comes ahead of new Fed Chair Kevin Warsh’s first policy meeting later this month, as he takes charge of an economy grappling with elevated inflation, partly exacerbated by the U.S.-Israeli war against Iran. “People are pricing in 100% probability of a Fed hike later this year.