NEW YORK, Aug 5 (Reuters) – The S&P 500 headed lower, Treasury yields advanced and the dollar rose on Friday after the U.S. July employment report blasted past expectations, raising the odds of continued monetary tightening from the Federal Reserve.
Wall Street pared losses as the session progressed. At close, the Nasdaq joined the bellwether index in the red and the blue-chip Dow reversed course to end in positive territory.
Benchmark U.S. Treasury yields and oil prices headed higher as the stronger-than-expected payrolls data appeared to confirm the economy is not yet in recession, which increased the likelihood of more aggressive rate increases from the Fed in September.
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The employment report “telegraphed some work needs to be done on the Fed’s side, regarding their interest rate policy,” said Matthew Keator, managing partner in the Keator Group, a wealth management firm…