Stocks rose Friday as Treasury yields jumped following the release of stronger-than-expected U.S. jobs data.
The U.S. economy added 336,000 jobs in September, the Labor Department said. Economists polled by Dow Jones expected 170,000 jobs. To be sure, wages rose less than expected last month.
The benchmark 10-year Treasury yield jumped more than 10 basis points on the back of the data to trade near a 16-year high set earlier this week. The 10-year Treasury yield was last up at 4.82%.
Friday’s jobs report raised concern among investors that the Federal Reserve will need to keep rates higher for longer to tame inflation.
“In this case, [the] good jobs news is bad news for the market,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “The bond market is going to worry that the Fed is going to keep raising rates. … And the stock market is going to worry about even higher interest rates and the impact that will have on the consumer and on corporate profits.”
The utilities sector, which is sensitive to high rates, fell 1.4% Friday. AES lost 5%, while Dominion Energy and Sempra shed 2% each. Consumer staples also declined 2.1%, with Church & Dwight, McCormick and Kellanova all down 3% and more.