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Stocks, bonds drop sharply as strong jobs report raises prospect for a rate hike
Stocks, bonds drop sharply as strong jobs report raises prospect for a rate hike

A strong jobs report shook up the financial markets Friday. U.S. employers added 295,000 jobs last month, the government said. That was more than economists were expecting and, combined with a drop in the unemployment rate, raised the likelihood of the Federal Reserve raising interest rates sooner than had been expected. The dollar surged and Treasuries fell as investors factored in the possibility that the Fed could implement its first rate hike in almost a decade as soon as June. The prospects of higher interest rates sent stocks tumbling. The market logged its worst day in two months. Fed policy makers have held interest rates close to zero for more than six years in an effort to...

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