Stock market today: Dow ends lower as yields hitch ride on strong jobs data
Investing.com — The Dow closed lower Thursday as data showing the job market continues to run hot sparked a flurry of bets on further Federal Reserve rate hikes, sending Treasury yields surging higher ahead of the monthly jobs report due Friday.
The Dow Jones Industrial Average fell 1.1%, or 366 points, the Nasdaq fell 0.8%, and the S&P 500 fell 0.80%.
Private payrolls grew by 497,000 in June, well above the 267,000 seen a month earlier and topped economists’ expectations of 228,000.
The report overshadowed data showing weekly initial jobless claims rose more than expected, and job openings for May missed expectations, stoking fears that the Fed is likely to follow its guidance for two more hikes.
In a sign of further economic strength, U.S. services activity increased more than expected in June, driven by increased demand, though prices paid, a gauge of inflation, fell to more than three-year lows.
Treasury yields jumped in anticipation of more Fed tightening ahead, with the 2-year yield and 10-year yield topping 5% and 4%, respectively.
The prospect of a hike in July is nearly priced in at 93%, according to Investing.com’s Fed Rate Monitor Tool.
Energy stocks led the broader market lower. EQT (NYSE:EQT), ConocoPhillips (NYSE:COP) and Hess Corporation (NYSE:HES) were down even as oil prices recovered from session lows following data showing a larger-than-expected weekly draw in U.S. weekly crude inventories.
U.S. crude inventories fell by 1.508 million barrels during the week ended June 30, above estimates for a drop of 983,000.
Consumer stocks were under pressure, dragging consumer stocks lower, pressured by a sea of red in homebuilder stocks on fears about demand as mortgage rates jumped to their highest level this
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