, Columnist
Falling Stocks and Rising Yields Aren't the New Normal
The medium-term outlook will be determined by Trump's policies on trade and the dollar.
Steven Mnuchin roiled Davos.
Photographer: Fabrice Coffrini/AFP/Getty ImagesThis article is for subscribers only.
Investors in U.S. equities and bonds headed for the doors on Feb. 2, with the bearish sentiment extending to global markets as the new week began on Monday. The immediate cause of the sell-off was the jobs report for January, which showed that average hourly wages rose at the fastest annual pace since 2009.
But the rising pay was a false alarm. Workers were employed for fewer hours last month, reducing their weekly take-home pay compared with December, and significantly slowing the pace of increase from a year earlier. These developments, if anything, point to disinflation. They give no green light for the Federal Reserve to boost interest rates at a faster pace than previously believed.