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

Aruni Soni   

US stocks drop as hot jobs report dampens rate-cut hopes and sends bond yields higher
Stock Market1 min read
  • 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:

Here's what else is going on:

In commodities, bonds, and crypto:


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