US stocks fell for the second day in a row as Treasury yields rose following surprisingly strong private hiring data. Traders are anticipating Friday's payroll figures in order to predict the Federal Reserve's next move.
The S&P 500 and Nasdaq 100 both fell after ADP Research Institute data showed that US companies added the most jobs in over a year in June, underscoring the labor market's ongoing strength. By July 26, swap contracts linked to future policy decisions had almost fully priced in a quarter-point increase and showed a growing likelihood of another hike by year end.
Exxon Mobil fell after forecasting a $4 billion hit to earnings, while some of the year's best performers, including Nvidia and Tesla fell.
Treasury yields rose across the curve following the ADP report and continued to rise after data showed the service sector expanded at the fastest rate in four months in June. The policy-sensitive two-year rate rose above 5% for the first time in 16 years before fading, while the 10-year rate rose to 4.08% for the first time since March.
