Since the beginning of the year, the major market indexes have faced intense selling pressure due to in large measure to the Federal Reserve’s tightening monetary policy to control high inflation, rising energy and commodity prices, supply disruptions arising from the Russian-Ukraine war, and the potential for the economy to slip into recession.
A stronger-than-expected jobs report is not expected to revive investor sentiment because it may bolster the Fed’s commitment to its hawkish stance. According to the labor department, the U.S. economy added 390,000 jobs in May, which was better than the 328,000 estimated by Dow Jones. The benchmark 10-year Treasury yield also climbed above the 2.96% level after the report.
