Markets were mixed after November's jobs data came in stronger than expected

9:38 a.m. ET, December 8, 2023

US stocks open lower after strong jobs report

Pedestrians in front of the New York Stock Exchange on December 7 in New York City.

NDZ/STAR MAX/IPx/`

U.S. stocks opened lower on Friday morning as traders digested a strong jobs report that showed a robust job market but raised doubts about whether the Federal Reserve will move to cut interest rates early next year.

According to the Bureau of Labor Statistics, the U.S. economy added 199,000 jobs in November. The unemployment rate fell to 3.7% from 3.9% in the previous month.

Economists expected a net gain of 180,000 jobs and a flat unemployment rate for the month.

The Dow fell 33 points, or 0.1%, on Friday morning. The S&P 500 fell 0.2% and the Nasdaq lost 0.4%.

Treasury yields rose sharply on the news, with the benchmark 10-year Treasury yield topping 4.25% on Friday morning.

While a strong labor market is good for Main Street, Wall Street sees it as a signal that the Federal Reserve could keep interest rates higher for longer.

“Federal Reserve Chairman Powell will likely find that reports like this, coupled with the recent dramatic shift in investor expectations, create a need for more hawkish messaging at the upcoming Fed meeting,” said Jason Pride, chief of investment strategy and research at Glenmede Note on Friday. The central bank's policymaking committee will meet next week, December 12-13.

Before Friday's report, financial markets saw a 58 percent chance that the Federal Reserve would cut interest rates at its March policy meeting, according to the CME FedWatch tool. That share fell to 49% after the report.

Both the Dow and S&P 500 are headed for a losing week, breaking a five-week winning streak.

In corporate news, shares of Carrier Global rose nearly 5% after the company said it would sell its global access solutions business to Honeywell. Shares of Honeywell, meanwhile, fell 1.4% on the news.