Reuters
US STOCKS-Wall St falls as strong data fuels inflation fears
The U.S. 10-year Treasury yield ticked up to 1.6% after ADP national employment data showed U.S. private payrolls increased by 978,000 in May, far more than expected, setting an upbeat tone for the closely watched official jobs report on Friday. “The investor consensus is that inflation will be more transient in the near term but the probability of inflation moving above targets next year is increasing and there is an unusual degree of uncertainty among investors regarding the inflation outlook,” said Jon Adams, senior investment strategist, BMO Global Asset Management in Chicago. “The U.S. economy will continue to rebound and that might lead to some inflation worries in the long-term; but we remain largely constructive on the near to medium term inflation outlook.”
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