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NEW YORK (AP) \u2014 U.S. stocks fell in premarket trading after a hotter-than-expected hiring report suggested the Federal Reserve will need to remain aggressive in its efforts to fight the inflation <\/p>\n
S&P 500 futures fell 1% after being slightly higher just before the Labor Department released its latest jobs numbers, which showed an increase of 528,000 jobs, compared with expectations for a gain of 250,000 jobs. <\/p>\n
The Dow Jones Industrial Average fell 0.7% and the Nasdaq fell 1.3%. Bond yields rose, with the 2-year Treasury yield rising to 3.2%. The 10-year Treasury yield rose to 2.81%. Yields had been retreating on expectations that the Fed might ease the pace of rate hikes a bit as the US economy slowed, giving a boost to the stock market. <\/p>\n
Markets in London, Paris and Frankfurt were lower, while Shanghai and Tokyo advanced. Oil prices retreated. <\/p>\n
The Fed has raised its benchmark rate twice by 0.75 percentage points this year, triple its usual margin and the biggest hikes since the early 1990s.<\/p>\n
Investors fear that rate hikes by the Fed and other central banks in Europe and Asia to control inflation nearing multi-decade highs could derail economic growth.<\/p>\n
Fed officials have sought to calm fears that the United States could slide into recession by pointing to a strong labor market as evidence that the economy can tolerate higher borrowing costs.<\/p>\n
In Asia, the Shanghai Composite advanced 1.2% to 3,227.03 and the Hang Seng in Hong Kong gained 0.1% to 20,201.94. <\/p>\n
Tokyo’s Nikkei 225 gained 0.9 percent to 28,175,897 after June cash labor earnings rose 2.2 percent from a year ago, although forecasters warned the strength was unlikely to last . Much of the increase was due to half-yearly bonuses that are paid in June. <\/p>\n
Seoul’s Kospi rose 0.7% to 2,490.80 and Sydney’s S&P ASX 200 advanced 0.6% to 7,015.60.<\/p>\n
India’s Sensex rose 0.1% to 58,381.11 after the Reserve Bank of India raised its benchmark interest rate by half a percentage point to 5.4%. Central bank governor Shaktikanta Das forecast economic growth of 7.2 percent in the year to March and inflation of 6.7 percent.<\/p>\n
New Zealand and Bangkok decreased while Singapore increased.<\/p>\n
Jakarta advanced 0.4 percent after Indonesia’s economy grew a stronger-than-expected 5.4 percent in the last quarter. <\/p>\n