Stocks are tumbling after a huge jobs report

finance.yahoo.com

The October jobs report was a huge beat, and now stocks are tumbling.

Near 10:12 a.m. ET, the Dow was down 74 points, the S&P 500 was down 13 points, and the Nasdaq was off 25. 

Stocks were still on pace for a sixth straight week of gains, which would be the longest streak this year. 

The report said the US economy added 271,000 jobs in October as the unemployment rate fell to 5%. Expectations were for 185,000 jobs to be added. 

Stocks sold off on the release of the stronger-than-expected jobs report as markets became more convinced that the Federal Reserve may really look to raise interest rates in December.

In contrast to stocks, bond yields were rising as markets began preparing for a higher overnight rate from the Federal Reserve, which now has rates pegged in a range of 0% to 0.25%. 

More

Following the report, the two-year yield — which has been closely watched by investors — rose to as high as 0.95%, its highest level since 2011. 

The 10-year yield was up to 2.3%, while the yield on three-month bills was up to 0.06%. Six-month bills were trading as high as 0.34%. 

The US dollar was also rallying on the news, with the dollar index rising 1.1% as the euro was falling sharply against the dollar, down 1.3% to around $1.074. 

Gold was also getting whacked after the report, falling nearly 1%.

on.cc東網專訊

【on.cc東網專訊】 聯儲局官員多次提到加息時機要視乎的數據表現，美國勞工部公布，10月份非農業新增職位由9月的14.2萬個，升至27.1萬，今年最勁，遠多過預期的 18.5萬個，期內失業率由9月的5.1%降至5%，符合預期，並為2008年以來最低。

美國10月平均每小時工資按月升0.4%，高過預期0.2%；按年升2.5%，亦高過預期升2.3%，升幅為金融危機以來最勁；平均每周工時34.5小時。美國上月新增職位高過所有分析員預測後，「債券大王」格羅斯接受訪問時預期，聯儲局12月加息機會達100%，相信市場預期加息0.25厘，惟他亦指市場仍未準備好加息，又認為強美元對環球金融系統帶來負面影響，呼籲投資者不要大手投資股票，更高的利率將利淡金價。

最新利率期貨亦顯示，美國下月加息機會由數據出爐前的56%急升至72%。聯儲局官員也撐加息！「超級鴿派」的美國芝加哥聯邦儲備銀行行長埃文斯(Charles Evans)表示，強勁的非農數據將有助通脹上升。他透露自己與主席耶倫一樣，認為12月絕對有可能加息。他擁有加息投票權。聖路易斯聯儲銀行行長布拉德亦表示，聯儲局10月議息聲明已說明很快加息，任何阻礙加息的因素已減弱，包括中國硬着陸可能性並未升高、美國勞動力市場基本正常化、油價趨穩說明通脹會回歸2%。