The Dow Jones Industrial Average retreated 0.51% to 53,414.25, while the S&P 500 and Nasdaq Composite slipped 0.38% and 0.29% respectively. Bond markets reacted sharply to the news: the two-year Treasury yield climbed 0.047 percentage point to 4.379%, hovering just 2 basis points below its annual peak. The 10-year note yield rose to 4.783%, and the 30-year bond reached 5.246%.

Analysts at BNP Paribas attributed the labor rebound to a broader cyclical upturn, noting that AI-driven optimism and stimulative policies continue to tighten the supply-constrained market. This robust activity has shifted market sentiment, with odds for a rate hike at the next central bank meeting jumping to roughly 60%. The surge marks a reversal from Thursday, when comments from a Fed governor briefly fueled speculation that policymakers might opt to hold rates steady.