Positive Jobs Report Pops Stocks, Dollar Higher as Bonds Fall

running moneyThe iShares S&P 500 Index ETF (NYSE:IVV) rose Friday morning, after Labor Department data showed employers added 255,000 positions in July.

Analysts had expected a much lower total of 180,000 new jobs.

Treasury yields spiked on the news, as investors are beginning to think the Federal Reserve might raise interest rates this year after all. The probability of a rate hike this year fell to just 12% earlier this month, despite some very upbeat language on the economy stemming from the last Fed meeting. Now, that probability has surged all the way to 45%.

Investors are selling off bonds on the positive report, which in turn pushes yields higher.

The U.S. dollar also gained on the news, with traders better that a better U.S. economy will mean strength versus world currencies in coming months.

The IVV rose $0.83 (+0.38%) to $218.50 per share Friday morning. IVV, which is the second largest ETF to track the S&P 500 index, has gained 6.66% year-to-date.


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