(Bloomberg) -- US stock futures rose after data showed a booming labor market that might prompt the Federal Reserve to raise rates sharply at its next meeting didn’t surprise traders who had already adjusted expectations.
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Contracts on the S&P 500 rose around 0.6% after employers added 315,000 jobs last month, slightly above what economists expected.
The strong jobs report validates the Fed’s view of a resilient economy that can withstand additional interest-rate hikes. But it comes as little surprise to traders who had recalibrated their expectations for Fed policy this week after several central bank officials quashed hopes of a dovish pivot. After the jobs report, a hike of three-quarters of a percentage point remains the likely scenario at the September meeting.
However, concern that rising rates will hurt growth has weighed on markets, pushing global bonds into their first bear market in a generation. The Bloomberg Global Aggregate Total Return Index of government and investment-grade corporate bonds down more than 20% from a 2021 peak.
Oil pared gains after news that the Group of Seven most industrialized countries is poised to agree to introduce a price cap for global purchases of Russian oil, while Russia looks set to resume gas supplies through its key pipeline.
Meanwhile, zinc headed for its biggest weekly loss in over a decade on concern Chinese demand will be hamstrung by new virus restrictions. Gold and Bitcoin rose.
The dollar, meanwhile, trimmed its weekly gain.
Here are some key events to watch this week:
UK leadership ballot closes Friday. Winner announced Sept. 5
Some of the main moves in markets:
Stocks
Futures on the S&P 500 rose 0.7% as of 8:33 a.m. New York time
Futures on the Nasdaq 100 rose 0.8%
Futures on the Dow Jones Industrial Average rose 0.1%
The Stoxx Europe 600 rose 0.5%
The MSCI World index fell 0.8%
Currencies
The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.8% to $1.0028
The British pound rose 0.3% to $1.1576
The Japanese yen was little changed at 140.24 per dollar
Bonds
The yield on 10-year Treasuries declined one basis point to 3.24%
Germany’s 10-year yield advanced one basis point to 1.57%
Britain’s 10-year yield advanced two basis points to 2.90%
Commodities
West Texas Intermediate crude rose 1.7% to $88.08 a barrel
Gold futures rose 0.4% to $1,716 an ounce
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