U.S. Stock Futures Rise, Bonds Fall on Solid Jobs: Markets Wrap

(Bloomberg) — U.S. stock futures rose and bonds fell after a strong jobs report bolstered confidence in the world’s largest economy.

S&P 500 futures extended gains after government data showed payrolls jumped 266,000 last month, the most since January — with the jobless rate dropping to 3.5%. Treasury 10-year yields climbed above 1.8%. The dollar rose.

While gains have broadly moderated from last year’s robust pace, the labor market still isn’t close to signaling recession — a fear that confronted investors amid the U.S.-China trade war. A strong jobs report could reduce the urgency for a deal, given that escalating levies have so far failed to significantly dent the economy. It could also validate Federal Reserve Chairman Jerome Powell’s view that rates can stay on hold following three cuts.

These are some of the main moves in markets:

Stocks

Futures on the S&P 500 climbed 0.5% to 3,133.75 as of 8:34 a.m. New York time.The Stoxx Europe 600 Index increased 0.8%.The MSCI Asia Pacific Index rose 0.3%.

Currencies

The Bloomberg Dollar Spot Index jumped 0.2%.The euro declined 0.3% to $1.107.The Japanese yen weakened 0.1% to 108.91 per dollar.

Bonds

The yield on 10-year Treasuries increased five basis points to 1.86%.Germany’s 10-year yield climbed two basis points to -0.28%Britain’s 10-year yield rose one basis point to 0.784%.

Commodities

The Bloomberg Commodity Index decreased 0.1%.West Texas Intermediate crude fell 0.9% to $57.93 a barrel.Gold decreased 0.8% to $1,470.80 an ounce.

–With assistance from Cormac Mullen, Eddie van der Walt and Sam Potter.

To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Yakob Peterseil

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©2019 Bloomberg L.P.

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