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Stock Traders Hit Sell Button on Hawkish Fed Bets: Markets Wrap

  • US jobs rise while unemployment falls, keeping pressure on Fed
  • Data bolster wagers on 75-basis-point rate hike in November
Bloomberg business news
Stocks Crumble as Markets Expect More Rate HikesSource: Bloomberg
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Wall Street got a reality check, with data showing a hot labor market that will likely keep the Federal Reserve on its aggressive hiking trail. Those bets sent stocks tumbling and drove 10-year US yields to their longest weekly up streak since 1984.

To David Donabedian at CIBC Private Wealth US, the report puts an “an exclamation point” on the idea that the market-bottoming process is going to be “a long one”. In this “bizarro world” of big hikes, traders may see the solid data as a reason to brace for turmoil, says Callie Cox of eToro. The conclusion for Brown Brothers Harriman’s Win Thin is that a 75-basis-point Fed boost in November is a “done deal,” with another increase of that size in December becoming a “real possibility.”