Stocks Mixed, Bond Yields Jump After Hot Jobs Report

Stocks were mixed on Wall Street and Treasury yields are sharply higher as the week ended after the government released a jobs report whose headline numbers came in hotter than expected but still showed some signs of moderating, Damian J. Troise reported for the Associated Press (AP).

US employers added 272,000 jobs in May, up from April and greater than economists expected.

The report suggests that markets may have to wait even longer for interest rate cuts from the Federal Reserve. The S&P 500 was drifting between small gains and losses Friday.

The Dow Jones Industrial Average rose 40 points, or 0.1%, and the Nasdaq composite fell 0.2% as of 11:10 a.m. Eastern. US employers added 272,000 jobs in May, up from April and greater than economists expected.

The report also showed the unemployment rate rising for a second straight month. Overall, it signals continued strength in the jobs market, with some minor signs of weakening.

The strong jobs market has supported consumer spending and the broader economy, but it has also been complicating the Federal Reserve’s path ahead for interest rates.

The yield on the 10-year Treasury jumped to 4.43% from 4.29% just before the jobs report was released. The two-year yield, which more closely tracks expectations for the Fed, jumped to 4.86% from 4.74% prior to the report’s release.