Stocks, dollar, yields fall after US jobs report

Stock indexes were lower on Friday while the U.S. dollar fell to multi-month lows against the euro and yen as data showed the U.S. economy created fewer jobs than expected last month.U.S. 10-year Treasury yields also declined, with the jobs report pushing up market expectations for the amount of rate cuts from the Federal Reserve this year.Nonfarm payrolls increased by 151,000 jobs in February, according to the closely watched employment report, with unemployment edging up. The report, the first under President Donald Trump's watch, came at the end of a week marked by confusion over U.S. trade policy and a global rise in borrowing costs.Wall Street's major stock indexes traded on both sides of unchanged from the open, but were last solidly lower. On Thursday, the Nasdaq confirmed a correction, defined as a fall of at least 10%, since peaking in December, as tariffs announced by Trump have fueled investor uncertainty. "The reaction that we're seeing at least this morning in the bond market gives a little more credence to the growth concern ... and equities had already pared their gains," said Jordan Rizzuto, managing partner and chief investment officer at GammaRoad Capital Partners.Following the jobs data, traders added to expectations the central bank will lower borrowing costs in June, according to data compiled by LSEG."The market is back to pricing in three rate cuts in 2025, but I wouldn’t bank on the Fed sending any dovish signals anytime soon," said Brian Jacobsen, chief economist at Annex Wealth Management. "With the unemployment rate at 4.1% and inflation still above target, they have no reason to change their messaging yet."A sharp sell-off in euro zone government bonds abated on Friday, after the biggest two-day fall in Bunds since the 1970s on the back of Germany's plans to completely rewrite its fiscal rules. Germany's 10-year bond yield (DE10YT=RR), the benchmark for the euro zone bloc, was down 5.5 basis points at 2.83%.The yield on benchmark U.S. 10-year Treasury notes fell 2.3 basis points to 4.259%, from 4.282% late on Thursday.The Dow Jones Industrial Average fell 374.52 points, or 0.88%, to 42,204.56, the S&P 500 fell 65.78 points, or 1.15%, to 5,672.74 and the Nasdaq Composite fell 276.92 points, or 1.52%, to 17,793.96.MSCI's gauge of stocks across the globe EURONEXT:IACWI fell 3.65 points, or 0.43%, to 846.73. The pan-European STOXX 600 index fell 0.5%.The STOXX 600 was down 0.7% for the week, snapping a 10-session winning streak, its longest since early 2024. The euro, on track for its best week since 2009, added to gains, rising 0.72% to $1.0861. Against the Japanese yen , the dollar weakened 0.34% to 147.44.Trump said on Friday he is "strongly considering" imposing sweeping sanctions, including ones on banking, and tariffs on Russia until a ceasefire and peace agreement is reached with Ukraine.`On Thursday Trump suspended tariffs of 25% he had imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed markets and stoked concerns over growth and inflation.Bitcoin fell 2.90% to $86,879.83. Trump signed an executive order to establish a strategic reserve of cryptocurrencies by using tokens already owned by the government, disappointing some in the market who had hoped for a firm plan to buy new tokens.U.S. crude rose 1.48% to $67.34 a barrel and Brent rose to $70.53 per barrel, up 1.54% on the day.