- Stock markets in the US and Europe are closed Good Friday. Europe will be open on Monday.
- The US Jobs Report increased odds of a Fed Rate hike at the May Meeting
- Dollar rallied, Bitcoin little changed
- Charles Schwab bought $53 billion of net client assets in March.
After a week full of softening labor market readings, today’s nonfarm payroll report showed hiring is not cooling as quickly as some where thinking. Although the US jobs report was within expectations, it felt like a step because Wall Street was expecting a softer print.
The market reacted quickly to dollar strength, as Treasury yields rose around 10 basis point across the 2- and 10-year Treasury rates. These gains were more easily held by the 2-year Treasury yield. The odds of the Fed raising rates at the May meeting were 52.6% at the time of the NFP report. They now stand at 70.3%. The Fed won’t stop tightening until they can see consistent weakness in the labor market or inflation significantly closer to target.
While financial stability risks are still on the table, they are not the primary driver at the moment. That should be enough for the Fed to continue raising rates at the May 3, however.rd meeting.
The US added…