Stocks started the day sharply lower, and Treasury yields sharply higher as July’s Nonfarm Payroll report showed the economy is still running strong.
Nonfarm Payrolls beat expectations in June as +528k jobs were created. Average hourly earnings rose +0.5% in June and +5.2% from this time last year. Hours worked were unchanged at 34.6. The Unemployment Rate fell to 3.5% and the Participation Rate fell slightly to 62.1%.
Despite investors attempting to buy the overnight dip, stocks closed lower on the day. Treasury yields reversed some of their overnight rise and closed higher on the day.