U.S. borrowing costs hit a 16-year peak due to substantial job numbers,

 


U.S. borrowing costs hit a 16-year peak due to substantial job numbers, increasing the likelihood of more rate hikes by the Federal Reserve.

 Surpassing expectations and marking the most significant increase over a year, the U.S. added 497,000 private sector jobs in the previous month.

The S&P 500 and Nasdaq Composite fell more than 1% but recovered to close 0.8% lower, signaling a fall on Wall Street.

  • Known as "Wall Street's fear gauge," the Vix volatility index increased to 17.1 as investors fretted about persistently rising borrowing prices.
  • The European Stoxx 600 index experienced an adverse reaction, as demonstrated by its closing decrease of 2.3%, the most significant one-day drop since March, and increases in the rates on two-year German debt to 3.36% and two-year U.K. Gilts to 5.56%, the highest levels since 2008.
  • The Fed is likely to resume rate hikes after a pause in June, as officials suggest that further increases in the benchmark interest rate would be appropriate.

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