U.S. markets continued rallying since hitting an intermediate bottom on June 16. The NASDAQ Index continued its recent outperformance. However, strong U.S. employment data on Friday detracted from performance, driven by amplified concerns of a longer-than-expected hawkish monetary policy environment.
Yields moved higher following the release of the U.S. employment data due to an increased probability of hawkish actions from the Federal Reserve, and especially at its next meeting in September. The U.S. yield curve remains inverted across numerous segments, including the notable 2y10y segment.
Oil prices continued to decline following OPEC’s announcement to increase supply amid prolonged fears of recession. Similar to equities, Gold managed to stay positive, but employment data detracted from its performance on Friday.