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
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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 steepened, 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.