US Employment Strength Fuels Fed Hike Bets; Stocks, Bonds Slide

Strong US employment data has increased market expectations of a Federal Reserve rate hike, prompting declines in stocks and bonds. Fed Governor Warsh reiterated inflation control as a priority, suggesting the strong labor market may give the Fed room to reassess policy restrictiveness. The shift in rate expectations marks a notable reversal from prior easing bets, pressuring risk assets.