Stocks and bonds fall in run-up to US Jobs report
Stocks and bonds lost steam ahead of the US jobs report, impacting the Federal Reserve's next steps. Traders refrained from big bets as equities retreated from all time highs.
and lost steam on the eve of the that will help shape the outlook for the 's next steps. retreated from their all-time highs as traders refrained from making any big bets ahead of the data. A 22V Research survey shows there's no consensus about the market reaction - with 36% of the investors polled betting on a "risk-off" move, 33% saying "risk-on", and 31% "negligible/mixed."Treasuries joined a slide in as the raised inflation forecasts after delivering a rate cut.
In the run-up to the US payrolls report, waded through a slew of data. Jobless claims topped estimates, US labor costs increased by less than previously reported and the trade deficit widened. Friday's monthly data is expected to show the US added 185,000 jobs in May while the unemployment rate held steady.
The S&P 500 edged lower after notching its 25th record in 2024. US 10-year yields rose two basis points to 4.29%. Swap markets continued to pencil in the start of the Fed rating cut in November, with a strong likelihood of another reduction in December.
held near a record high. The euro rose and the yield on 10-year German bonds climbed four basis points to 2.55%.
A cooling economy is signaling potential , which can be bullish for stocks. But the reason of rate cuts matters too.
As equities remain near record levels, the so-called single-stock fragility is posing a risk of a spill over into a broader index if something goes wrong.
Source: Stocks-Markets-Economic Times
