S&P 500 Has Its Worst Jobs Day Since October 2022: Markets Wrap

  • JPMorgan, Citi see Fed dealing two supersized cuts this year
  • Goolsbee says the Fed won’t overreact to one month’s data
El-Erian: US Economy Slowing Faster, Broader Than AnticipatedSource: Bloomberg
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The selloff in stocks intensified and bond yields tumbled as a weak jobs report fueled worries that the Federal Reserve’s decision to hold rates at a two-decade high is risking a deeper economic slowdown.

Those fears roiled trading around the globe, spurring a massive surge in volatility and a flight away from the riskier corners of the market. The S&P 500 saw its worst reaction to jobs data in almost two years. A plunge in key technology companies sent the Nasdaq 100 down over 10% from its peak, passing the threshold that meets the definition of a correction. A rally in Treasuries extended into a seventh straight day, with traders projecting the Fed will cut rates by more than a full percentage point in 2024.