- Strong jobs report fail to help stocks gain traction.
- Probability of a second rate cut after July decreases after data.
- Financials is the only sector that’s in the positive territory in the early trade.
Major equity indexes in the U.S. started the day in the negative territory as investors assessed today’s upbeat Nonfarm Payrolls report as a factor that could cause the Fed to refrain from making more than one rate cut in 2019. In fact, according to the CME Group FedWatch Tool, the probability of the Fed staying put in September rose to 33.3% from 21.8% a day ago.
As of writing, the Dow Jones Industrial Average and the S&P 500 were both down 0.5% on the day while the Nasdaq Composite was erasing 0.7%.
Among the 11-major S&P 500 sectors, the Financials Index is the only one in the positive territory boosted by surging Treasury bond yields. Among the losers, the rate-sensitive Real Estate Index is down nearly 2% on the day.