Major market averages shift lower with the opening bell as the U.S. economy added more jobs than expected in May.
At the start of trading the Dow Jones (DJI) is -0.8%, S&P 500 (SP500) -1.1% and the Nasdaq (COMP.IND) is lower by 1.6%.
Nonfarm payrolls rose 390K last month.
While the gain in payrolls will further ease concerns about a near-term recession, investors look worried that the labor market is still too hot for the Fed’s liking.
Rates rose after the report. The 10-year Treasury yield is up 5 basis points to 2.96%, with the 2-year up 4 basis point to 2.67%.
There were some encouraging data points for those worried about too much Fed tightening. Average hourly earnings rose less than anticipated and the labor force participation rate rose.
“Seems much more likely now we have indeed seen growth downshift from 600k or so to about 400k or so,” Adam Ozimek, chief economist at Innovate Economy, tweeted. “That’s still a good pace, and with wage growth decelerating, its hard to complain. The odds of a wage price spiral are declining yet again. This wasn’t the most likely scenario to begin with, but whatever odds you place, the probability has fallen with the last few reads.”
Markets were dented early from some more dour comments on the economy. Elon Musk is reportedly looking at cutting 10% of Tesla’s workforce and has a “super bad feeling” on the economy. Jamie Dimon roiled the market earlier this week with his economic hurricane remarks.