WALL ST DIVES AS JOBS DATA FANS RATE WORRIES AND TREASURY YIELDS SPIKE
Wall Street's main indexes slid more than 1% on Tuesday after a hotter-than-expected jobs report deepened worries over interest rates staying higher for longer, providing a fresh leg up to Treasury yields and dragging megacap stocks lower.
Both the S&P 500 (.SPX) and the Dow (.DJI) hit their lowest levels in over four months intraday, with the latter turning negative on a year-to-date basis for the first time since early June. A Labor Department report showed U.S. job openings unexpectedly increased in August, pointing to tight labor market conditions. Cleveland Fed leader Loretta Mester noted the potential for another rate hike in November if the current state of the economy holds, while Atlanta President Raphael Bostic said it will likely be a long time until rate cuts arrive. Traders' bets on at least another 25-basis-point rate hike stood in November and December at 30% and 48%, respectively, according to CME's FedWatch tool. Meanwhile, a rate cut was priced in as early as March.