Stocks fell on Friday as investors believe a stronger-than-expected jobs report will likely keep the Federal Reserve on track for its aggressive rate hikes.
The S&P 500 fell 0.5%, while the tech-heavy Nasdaq Composite dropped 1%. The Dow Jones Industrial Average shed 63 points, or about 0.2%.
Nonfarm payrolls increased 372,000 in the month of June, better than the 250,000 Dow Jones estimate and continuing what has been a strong year for job growth, according to data Friday from the Bureau of Labor Statistics.
“The overall picture is pretty strong job growth, and I’d say quite good earnings growth. That just makes the case for 75 basis points this month almost air tight,” said Michael Schumacher, Wells Fargo director rates strategy.
Treasury yields jumped sharply after the jobs data was released, which may have weighed on stocks.
The action in futures followed a winning session Thursday in which the S&P 500 posted a four-day positive streak, matching its longest of the year thus far. The index is now down about 19% from its all-time high in January.
The S&P 500 is up about 2% during this holiday-shortened week, and it’s on pace for its second positive week in the last three.
The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite are up 0.92% and 4.4% this week, respectively. Both indexes are also on track for their second positive week in the last three.