Traders Weigh Fed Timeline After Weak Jobs Report: Markets Wrap

  • Hiring slows sharply amid delta, complicating taper decision
  • Senate Democrats eye taxes on stock buybacks, excess CEO pay
BlackRock’s Jeffrey Rosenberg talks about the impact of the August monthly jobs report on Fed policy.Source: Bloomberg
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The long-awaited jobs report triggered small moves in the equity market, with investors weighing whether a sharp slowdown in U.S. hiring would make the Federal Reserve delay a reduction in economic stimulus.

Traders turned to the perceived safety of technology giants, while most groups in the S&P 500 fell. Volume was low ahead of the Labor Day holiday. The Treasury curve steepenedBloomberg Terminal, with the gap between 5- and 30-year yields increasing. Investors also assessed a Bloomberg News report saying that Senate Democrats are discussing a wider range of tax proposals than President Joe Biden envisioned, including levies on stock buybacks, carbon emissions and executive compensation.