US stocks drop as hot jobs report dampens rate-cut hopes and sends bond yields higher

• US stocks fell on Friday after the monthly jobs report came in stronger than expected.
• The economy added 199,000 jobs, and the unemployment rate fell to 3.7%.

US stocks fell on Friday after a strong jobs report showed that markets may have miscalculated the chances of Fed rate cuts.

The economy added 199,000 jobs in November, above forecasts for 190,000. The unemployment rate edged lower to 3.7%, while markets expected it to remain flat from October's 3.9%. Those numbers were a warning to investors that rate-cut speculation may have gone too far.

Following the release, Treasury yields initially jumped more than 10 basis points before later paring gains.

"Just when you think the economy is finally softening, it continues to show signs of strength," Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said, adding that "it's clear that the job market is still strong."

Here's where US indexes stood as the market opened at 9:30 a.m. on Friday:

• S&P 500: 4,579.71, down 0.13%
• Dow Jones Industrial Average: 36,099.04, down 0.04% (14.99 points)
• Nasdaq Composite: 14,283.58, down 0.39%

Here's what else is going on:

• Jim Rogers said stocks, bonds, and real estate are all bubbles set to pop as a recession approaches.
• BlackRock said markets are in for a period of volatility as the economy struggles out of its "deep hole."
• The world's wealthiest families got $1.5 trillion richer in 2023.

In commodities, bonds, and crypto:

• Oil prices rose with West Texas Intermediate up 2.52% to $71.09 a barrel. Brent crude, the international benchmark, moved up 2.50% to $71.06 a barrel.
• Gold slipped 0.38% to $2,038 per ounce.
• The 10-year Treasury yield jumped 9 basis points to 4.22%.
• Bitcoin rose 0.77% to $43,590.39.