US stock markets opened lower and have continued to sell off.
The S&P 500 is down 87 points or 1.1%, the Nasdaq Composite down 1.9% and the Russell 2000 down 1.5%.
Futures were already negative but the selling accelerated after today’s non-farm payrolls report. It showed the US adding 172K jobs in May compared to 85K expected. The March and April reports were also revised higher by a combined 72K jobs.
When you zoom out, the US jobs picture looks suddenly firm and likely accelerating.
This also dovetails with a very strong JOLTS job openings report earlier this week.
The market suddenly sees a nearly 50% chance of a Fed hike in September and US 2-year yields are up 8.4 bps to 4.13%. The Fed will enter its blackout period at midnight today and in a fortnight we will get the first decision and press conference in the Kevin Warsh Fed
