Dow, Tech Stocks Cut Gains Amid Strong Jobs Report As Yields Rise; Tesla Stock Skids Again

Bloomberg

Stocks Pare Gains With Treasury Yields Near 1.6%: Markets Wrap

(Bloomberg) — Stocks pared gains after jobs data soared past estimates, fueling anxiety the economy will run too hot and kick up inflation. Treasuries fell.The S&P 500 trimmed most of its earlier advance, while still rebounding from a five-week low. U.S. employers added more jobs than forecast in February and the unemployment rate declined, suggesting the labor market is clawing its way forward again following several disappointing months. Benchmark 10-year bond yields climbed to about 1.6%. The dollar rose.Treasury yields have spiked in recent weeks on mounting expectations of stronger economic growth and faster inflation, unsettling the stock market, particularly shares of high-flying technology companies. Federal Reserve Chairman Jerome Powell left investors underwhelmed by his comments on the bond market Thursday. While he did reaffirm the central bank’s commitment to remaining accommodative, he did not try to rein in the selloff.For equity markets, “evidence of a strengthening economy may help steady the nerves,” said Seema Shah, chief strategist at Principal Global Investors. “Does the Fed have the credibility to keep a rein on bond yields? With real yields steadily making their way up to zero, the Fed is slowly running out of time to prove its resolve and commitment to its average inflation target. Until it does, each piece of positive economic news may only serve to disrupt both bond and equity markets.”Read: Momentum Quants Will Unleash the ‘Most Turbulent Rebalance Ever’These are some of the main moves in markets:StocksThe S&P 500 climbed 0.3% as of 9:50 a.m. New York time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index dipped 0.7%.The MSCI Emerging Market Index declined 0.8%.CurrenciesThe Bloomberg Dollar Spot Index climbed 0.4%.The euro dipped 0.4% to $1.1921.The Japanese yen depreciated 0.4% to 108.40 per dollar.BondsThe yield on 10-year Treasuries climbed three basis points to 1.59%.Germany’s 10-year yield advanced two basis points to -0.29%.Britain’s 10-year yield increased five basis points to 0.776%.CommoditiesWest Texas Intermediate crude climbed 2.4% to $65.39 a barrel.Gold strengthened 0.1% to $1,698.85 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

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