The world's largest bond market continued to fall, and stocks fell ahead of the US jobs report, which is expected to provide clues on the Federal Reserve's next steps.
Amazon rose in late trading after a bullish revenue forecast, while traders awaited Apple's results. Longer-term Treasuries are now on track for their worst week since 2023, owing to signs of unexpected economic strength and concern about a widening fiscal deficit.
A report released on Thursday highlighted the resilient demand for workers, while separate data showed that labor productivity increased, helping to offset rising labor costs. These figures came before the government's employment data, which was expected to show the US added 200,000 jobs in July. While that would be the weakest print since the end of 2020, it would still be a significant increase historically.
The S&P 500 fell for the third day in a row. Tech megacaps, which bore the brunt of recent equities selling, outperformed. Treasury 30-year yields reached 4.3%, extending a three-day gain of approximately 30 basis points. The dollar had not changed much. The pound fell after the Bank of England warned that the fight against inflation may necessitate tighter borrowing conditions for an extended period of time.