Treasuries Dip, Stocks Waver After US Jobs Surge: Markets Wrap

7)i09ovgavazgf1hi3osumc5_media_dl_1.png Bloomberg

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(Bloomberg) — A surprise surge in US jobs hit Treasuries as traders pared bets on interest-rate cuts by the Federal Reserve this year. Asian equity futures were mixed after US stocks ended flat.

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The latest monthly US employment report showed 130,000 roles added in January, twice the median forecast, underscoring a robust economy that may not merit imminent policy easing.

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Short-dated Treasuries were hit the hardest, with two-year yields rising six basis points to around 3.51%. Money markets priced in the Fed’s next cut in July, from June previously. Gold and silver edged lower on Thursday after gaining in the previous session while Bitcoin fell for a fourth session. The dollar was fractionally weaker on Wednesday, benefiting the yen, which touched a two-week high.

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Equity-index futures pointed to gains in Japan as markets were set to reopen Thursday following a holiday, while contracts for Hong Kong fell. Australian shares opened higher. The S&P 500 ended Wednesday flat after a bumpy session with real estate services stocks getting hit, while the Nasdaq 100 rose 0.3%.

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The moves signaled that for now, strength in the US economy counterbalances the desire for lower borrowing costs, supporting risk sentiment that has itself taken a battering over AI concerns in recent weeks. The next key hurdle for markets is Friday’s US inflation report, which could reinforce the case for keeping rates higher for longer if price pressures fail to ease.

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“The report will ease concerns around the consumer,” wrote Krishna Guha at Evercore, referring to US jobs data. “It pours cold water on the idea the Fed could cut rates again before mid-year and will fuel internal debate as to how restrictive policy is and how much slack there is in the labor market.”

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The S&P 500 closed near 6,940. In late hours, Cisco Systems Inc. gave a tepid margin forecast, overshadowing a generally positive outlook fueled by artificial-intelligence gains. McDonald’s Corp.’s US sales grew at the fastest pace in more than two years.

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In commodities, oil rose as tensions in the Middle East outweighed concerns that there’s a supply glut growing. Nickel extended gains after Indonesia signaled a sharp cut to output this year, curbing supply from the world’s biggest mine.

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Concerns about rising unemployment that led to three rate cuts late in 2025 — before a pause in January — were likely eased by Wednesday’s data. At last month’s policy meeting, Fed officials had already cited signs of stabilization as a reason to hold rates steady.

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US payrolls rose in January by the most in more than a year and the unemployment rate unexpectedly fell, suggesting the labor market continued to stabilize.