(Bloomberg) -- Volatility continued to dominate financial markets, with stocks pushing lower as the latest U.S. jobs data cemented expectations the Federal Reserve will remain on its rate-hike path to combat stubbornly high inflation.
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At the end of a week marked by fickle trading, quick reversals and heightened anxiety, the S&P 500 failed to stay in the green and fell to its lowest level in about a year. The gauge posted its fifth straight weekly drop -- the longest losing streak since June 2011. The tech-heavy Nasdaq 100 underperformed. Treasury 10-year yields remained above 3%, while the dollar rose. Gasoline futures in New York settled at a record high.
“The markets have been on a roller-coaster ride,” said Lindsey Bell, chief markets and money strategist at Ally. “There is a significant amount of uncertainty. A key question for many investors is how big of a hurdle a quickly rising interest-rate environment is going to be for stocks to overcome.”
The long-awaited jobs report showed U.S. hiring advanced at a robust pace in April, yet a smaller labor force may increase pressure on employers to boost wages even more to bring workers back. That dynamic will likely complicate the Fed’s fight to tame decades-high inflation, as central bankers work to bring labor demand in line with supply.
Fed Bank of Richmond President Thomas Barkin said he would not take anything off the table in the central bank’s fight to curb inflation, including raising interest rates by 75 basis points -- an option downplayed by Chair Jerome Powell.
Read: Fed’s Kashkari Signals Comfort With Some Cooling in Job Market
“Investors just can’t confidently buy stocks as too much uncertainty persists with what will happen with global growth and how far the Fed will take tightening beyond the summer,” wrote Ed Moya, senior market analyst at Oanda.
“No big surprises from today’s jobs report -- it largely confirms that the labor market remains tight, affording the Fed the flexibility to tackle its price stability mandate head-on,” said Jason Pride, chief investment officer of private wealth at Glenmede.
Some of the main moves in markets:
The S&P 500 fell 0.6% as of 4 p.m. New York time
The Nasdaq 100 fell 1.2%
The Dow Jones Industrial Average fell 0.3%
The MSCI World index fell 1%
The Bloomberg Dollar Spot Index rose 0.2%
The euro was little changed at $1.0547
The British pound fell 0.2% to $1.2342
The Japanese yen fell 0.3% to 130.54 per dollar
The yield on 10-year Treasuries advanced eight basis points to 3.12%
Germany’s 10-year yield advanced nine basis points to 1.13%
Britain’s 10-year yield advanced three basis points to 2.00%
West Texas Intermediate crude rose 2.1% to $110.49 a barrel
Gold futures rose 0.3% to $1,881.60 an ounce
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