Stocks Puke On ‘Good’ Labor Market News, Rate-Hike Odds Spike

Great news America – the unemployment rate has tumbled (with hispanic unemployment at record lows).

Terrible news America – improving labor market statistics are the opposite of what The Fed is trying to do and this data today is not going to encourage any pause or pivot anytime soon.

That sparked an immediate mini-flash-crash in stocks…

The hope-fueled rip from earlier in the week is quickly being vaporized…

Nasdaq is underperforming but all the majors are down hard…

The reaction in bonds (up in yield) and the dollar (up in price) was far less aggressive.

Gold is also getting hit lower (spot below $1700)…

And the jobs data pushed terminal Fed rate expectations hawkishly higher….

Powell and his pals have no excuse but to keep the pedal to the metal on tightening.