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Stock futures fell after the April jobs report showed that the economy added fewer jobs than expected.
Near 10:50 a.m. ET stocks were near their lows of the session with the Dow off 74 points, the S&P 500 off 111, and the Nasdaq down 32.
Bonds rallied right after the jobs report, before retreating. The benchmark 10-year yield fell 3 basis points to as low as 1.712%.
Near 10:55 a.m. ET the 10-year was trading near 1.75%.
The US economy added 160,000 jobs, below expectations for 200,000, while the unemployment rate was unchanged at 5%. It had been expected to drop to 4.9%.
Stocks went nowhere on Thursday, with the S&P 500 closing off 0.02%.
They retreated from near-all-time highs earlier in the week. And barring a big rally on Friday, stocks are headed for the worst five-day period since February.
The dollar fell after the jobs report and approached the weakest level in 18 months. It had regained some strength during the week, rallying by the most since November according to Bloomberg.
The dollar index fell to as low as 93.28.
“We suspect that the dollar risk is asymmetrical,” wrote Brown Brothers Harriman’s Marc Chandler in a note earlier this week. “It is more likely to be sold on disappointment than to rally on a stronger report” given the market’s dovish expectations for the Federal Reserve’s interest rate hikes.