Bond yields are surging again as investors worry about upcoming rate hikes.
The stock market jumped on Friday while bond yields surged after the U.S. economy added back a much higher-than-expected 467,000 new jobs in January, a sign to investors that the Federal Reserve will continue with its plans to aggressively tighten monetary policy and raise interest rates. While the strong jobs report is “good news” for the economy and American workers, “unfortunately for the stock market” it will add to concerns that the Federal Reserve is going to be “forced to raise rates more quickly and to a higher level,” says Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. Tech stocks have been struggling recently, with the Nasdaq falling 3.7% on Thursday alone.
