Stocks Fall as Bleak Jobs Report Sparks Bond Rally: Markets Wrap

Strong evidence the US labor market is slowing rippled through markets, driving stocks lower and bonds higher on concern the Federal Reserve will now have to rush to prevent further weakness.

The sharp cooling triggered fears about a more pronounced jobs slowdown, sparking a flight to Treasuries, with two-year yields tumbling toward the lowest since 2022. The data also prompted a fast repricing in money markets, which now project almost three Fed cuts in 2025.

Wall Street parses jobs data.

Source: Bloomberg

Those prospects were not enough to sustain gains in equities. After briefly hitting all-time highs, the S&P 500 fell on worries ...