Stocks slipped and Treasury yields rose sharply on Friday after the government released a jobs report with numbers that exceeded expectations. The S&P 500 fell 0.1 percent, the Nasdaq composite slipped 0.2 percent, and the Dow Jones Industrial Average fell 0.2 percent.
U.S. employers added 272,000 jobs in May, signaling strength in the job market but also some signs of weakening. This could impact the Federal Reserve’s decisions on interest rates. The 10-year Treasury yield jumped to 4.43 percent, and the two-year yield increased to 4.89 percent.
Wall Street is anticipating at least one rate cut from the Fed this year, but the strong economy and stubborn inflation levels may complicate this. Updates on inflation levels next week will provide more insight.
After the jobs report, investors reduced their bets on a rate cut from the Fed at its July meeting. Retailer earnings have shown a pullback in spending on non-essential items, affecting consumer spending. GameStop, the meme stock craze company, slumped 39.4% after reporting another quarterly loss.
