US stocks fall further after massive rout as bond yields climb following strong jobs report
Stocks fell Friday, stretching losses after Thursday's mauling of Wall Street's indexes.
The US economy added 428,000 jobs in April, above the median estimate of 391,000 jobs.
Bond yields moved higher, with the 10-year yield above 3%.
US stocks fell Friday, with the jobs report showing the US added more jobs than anticipated in April, suggesting the Federal Reserve will roll on with its aggressive cycle of interest-rate increases.
Stocks extended losses after Thursday's rout that sent the Dow Jones Industrial Average plunging more than 1,000 points, wiping out Wednesday's rally.
On Friday, the Labor Department said the economy added 428,000 jobs last month, a figure that outstripped the median estimate of 391,000 jobs.
The jobs report "largely confirms that the labor market remains tight, affording the Fed the flexibility to tackle its price stability mandate head-on," Jason Pride, chief investment officer of private wealth at Glenmede, in a note.
Here's where US indexes stood at 9:30 a.m. on Friday:
S&P 500: 4,126.68, down 0.49%
Dow Jones Industrial Average: 32,795.22, down 0.61% (202.75 points)
Nasdaq Composite: 12,224.08, down 0.76%
Bond yields continued to rise Friday as prices fell, with investors pricing in expectations for further rate hikes. The 10-year yield rose six basis points to 3.12%.
"Wage growth came in at a slower and below expectations month-over-month growth rate of 0.3%, but one month does not yet make a trend consistent enough for the Fed to slow its monetary tightening intentions," said Pride.
Around the markets, China is unlikely to hit its 5.5% target for growth this year, says economist Stephen Roach.
Legendary investor Jeremy Grantham has issued a warning about the US housing market as mortgage rates rise.
Oil prices rose. West Texas Intermediate crude gained 1% to $109.32 per barrel. Brent crude, the international benchmark, gained 1.2% to $112.39.
Gold edged up 0.1% to $1,877.70 per ounce.
Bitcoin shed less than 0.1% at $39,481.59.
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