GLOBAL MARKETS-Yields rise, US stocks end down slightly as job growth jumps in January

U.S. stocks finished slightly lower ‌while ​Treasury yields rose on Wednesday after data showed the U.S. economy created far more jobs than expected in January, which could make it more difficult for the Federal Reserve to keep cutting rates this year.

U.S. stocks finished slightly lower ‌while ​Treasury yields rose on Wednesday after data showed the U.S. economy created far more jobs than expected in January, which could make it more difficult for the Federal Reserve to keep cutting rates this year. The dollar mostly rallied against major ‌currencies after the jobs report, but it was down against the Japanese yen.

The U.S. Bureau of Labor Statistics, in its shutdown-delayed report, said 130,000 jobs were added to nonfarm payrolls in January, well above forecasts for a rise of 70,000, while both November and December were revised down a touch. The unemployment rate ticked lower to 4.3% from ‌4.4% in December, below forecasts for a reading of 4.4%.

"We're seeing momentous swings on key pieces of data," said Jake Dollarhide, chief executive officer of Longbow ‌Asset Management in Tulsa, Oklahoma. "There's a lot of confusion for this market and for investors in general," he said. "Certainly March is off the table," in terms of an interest rate cut. Fed policymakers looked likely to keep rates on hold for longer after the data. Market expectations for a Fed cut of at least 25 basis points at the central bank's March meeting had risen to about 20% ⁠before the jobs ​data, but retreated after the jobs report ⁠and were last at about 8%, according to CME's FedWatch Tool.

The Dow Jones Industrial Average eased 66.74 points, or 0.13%, to 50,121.40, the S&P 500 fell 0.34 point to 6,941.47 and the Nasdaq Composite ⁠fell 36.01 points, or 0.16%, to 23,066.47. MSCI's gauge of stocks across the globe rose 0.85 points or 0.08%, to 1,055.57, and hit another record high. European shares also rose to a ​record high. The pan-European STOXX 600 index finished 0.1% higher at 621.58 points, and also marked an intra-day record. Gains in commodity-related stocks offset weakness in ⁠technology and financials.

The yen extended its recent rally, marking a potential shift in investor thinking since Sunday's landslide election victory for Japan's Prime Minister Sanae Takaichi. Against the Japanese yen, the dollar weakened 1.02% to 152.79. Against ⁠the ​Swiss franc, the dollar gained 0.29% to 0.77. The euro was down 0.1% at $1.1882. In other currencies, the Australian dollar rose to a three-year high after Reserve Bank of Australia Deputy Governor Andrew Hauser said inflation was too high and policymakers were committed to doing whatever was necessary to bring it to heel. The Australian ⁠dollar strengthened 0.88% versus the greenback to $0.7136. The yield on the benchmark U.S. 10-year Treasury note rose 2.7 basis points to 4.1172% after hitting a session high of 4.206%.

In ⁠commodities, oil prices rose as investors were ⁠concerned about escalating tensions between Iran and the United States. U.S. crude gained 67 cents to settle at $64.63 a barrel, while Brent crude oil futures rose 60 cents to settle at $69.40. Spot gold climbed 1.32% to $5,089.35 an ounce.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)