news/GOOGL/2023.02.03/Stocks tumble, U.S. bond yields rise on strong jobs report.txt

*Jan U.S. payrolls 517k vs 185k estimate*Dollar bounces off 9-month lows*Amazon, Alphabet lower after earningsNEW YORK, Feb 3 (Reuters) - A gauge of global stocks
dropped more than 1%, while U.S. Treasury yields and the dollar
rose on Friday after a shockingly strong U.S. jobs report
renewed concerns the Federal Reserve may remain aggressive in
its path of interest rate hikes as it tries to tame inflation.The report from the Labor Department showed nonfarm payrolls
surged by 517,000 jobs in January, well above the 185,000
estimate of economists polled by Reuters, with data for December
also being revised higher. Average hourly earnings increased
0.3%, as expected, down from the 0.4% in the prior month, while
the unemployment rate of 3.4% was the lowest since 1969.Equities have rallied to start the year on expectations the
Fed may be forced to pause or even pivot from its rate hikes in
the back half of the year, growing more confident after comments
from Fed Chair Powell on Wednesday that acknowledged the
"disinflationary" process may have begun. Additional fuel was
added after policy announcements by the European Central Bank
(ECB) and Bank of England (BoE) on Thursday."While it is very helpful to see the jobs increasing, it is
really a horse race between that ongoing income and how quickly
inflation comes down," said Lisa Erickson, head of public
markets group at U.S. Bank Wealth Management in Minneapolis,
Minnesota."The Fed really is in a tough place trying to navigate
between keeping those price pressures down and not causing too
much economic pain."Interest rate futures now indicate the Fed is likely to
deliver at least two more rate hikes, taking the benchmark rate
to above 5%.U.S. stocks closed lower, with additional downward pressure
being supplied by a 2.75% decline in Google parent Alphabet
and an 8.43% drop in Amazon after their
quarterly results.Apple, however, helped prevent further declines, as
the stock erased losses in premarket trading to close 2.44%
higher following its quarterly earnings.Earnings are now expected to decline 2.7% for the quarter
from the year-ago period, according to Refinitiv data, down from
the 1.6% fall expected at the start of the year.Other data showed the U.S. services industry rebounded
strongly in January, according to the Institute for Supply
Management (ISM).The Dow Jones Industrial Average fell 127.93 points,
or 0.38%, to 33,926.01; the S&P 500 lost 43.28 points, or
1.04%, to 4,136.48; and the Nasdaq Composite dropped
193.86 points, or 1.59%, to 12,006.96.Even with Friday's declines, both the S&P 500 and Nasdaq
notched weekly gains, with the Nasdaq securing a fifth straight
week of gains, its longest since October-November 2021.European stocks closed modestly higher, erasing earlier
declines on optimism over the region's economy. The pan-European
STOXX 600 index rose 0.34%, but MSCI's gauge of stocks
across the globe shed 1.08%. The STOXX index
closed with a 1.23% gain on the week, its highest closing level
since April 21. MSCI's index was on track for a second straight
weekly advance even with Friday's tumble.U.S. Treasury yields climbed after the payrolls report, with
those on the benchmark 10-year note up 13 basis
points to 3.528%, from 3.398% late on Thursday, poised for their
biggest one-day jump since Oct. 19.The greenback strengthened in the wake of the data, climbing
off a nine-month on Thursday to hit 103.01, its highest since
Jan. 12, as the dollar index rose 1.149% and the euro
was down 1.02% to $1.0799.The Japanese yen weakened 1.90% to 131.18 per dollar,
while Sterling was last trading at $1.2053, down 1.39% on
the day.Crude prices turned lower in part due to strength in the
dollar and concerns about higher interest rates, with Brent and
WTI both dropping nearly 8% on the week.U.S. crude settled down 3.28% at $73.39 per barrel
and Brent settled at $79.94, down 2.71% on the day.(Reporting by Chuck Mikolajczak; additional reporting by
Herbert Lash; Editing by Kirsten Donovan and Jonathan Oatis)