Wall Street sinks on worries that a too-hot job market will keep inflation high

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Worries about a too-hot job market are sending Wall Street lower. The stock market hates high interest rates because they knock down prices for all kinds of investments.

Worries about a too-hot job market are sending Wall Street lower Friday, and stocks are on track to close out a fifth straight losing week with more drops. The Standard & Poor's 500 was 0.8% lower in early trading and heading for its longest weekly losing streak in 16 months. The Dow Jones industrial average was down 196 points, or 0.6%, as of 9:40 a.m. Eastern, and the Nasdaq composite was 0.8% lower. Once again, it was rising yields in the bond market pushing stocks lower.

Shorter-term yields were swinging, though, as economists pointed to some more encouraging data within the jobs report. The two-year Treasury yield more closely tracks expectations for action by the Fed than the 10-year yield, for example, and it quickly soared from 5.04% just before the release of the jobs report to 5.20% shortly afterward. It then pared its gain to pull back to 5.07%.

 

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