The Wall Street session remained a strange paradox until around 7:54pm (Paris time) US time: the indices continued their bullish rally with a 3rd consecutive intraday all-time record on the S&P500 at 5,370 and then on the Nasdaq-100 at 19,135.

The Nasdaq-100 ended down -0.1% (as did the 'S&P') at exactly 19,000, for the symbol.000, for the symbol.
And while Wall Street was exploring new and unknown territories, the bond markets continued to inexorably deepen their losses following the publication of the 'NFP'... and it wasn't until around 8 p.m. that investors realized this could be a problem.

The T-Bonds began their nosedive following the publication of unexpectedly strong figures, with 100,000 more jobs created than the 172,000 anticipated.

The T-Bonds erased 70% of their gains from the start of the week in one session: +16pts to 4.438% (vs. 4.50% last Friday).

The '2-yr' soared +17Pts to 4.89% and the '30-yr' +12Pts to 4.555%.

The US economy generated +272,000 nonfarm jobs in May, according to the Labor Department, while nonfarm job creations for the previous two months were only slightly revised downwards, from 315,000 to 310,000 for March and from 175.000 to 165,000 for April, i.e. a total balance of -15,000 for these two months.

The unemployment rate rose by 0.1 points to 4%, where economists were anticipating stability at 3.9%, while the labor force participation rate stood at 62.5% (NB: the unemployment rate had been below 4% for over two years now, the first time this had occurred since the 1950s).

The other negative indication is that average hourly earnings rose at an annual rate of 4.1% instead of 3.9%.

It will be difficult for the Fed to adopt a dovish tone for next week's FOMC... and the consensus for a September rate cut plummets from 71% to 50%.

Wall Street's trend reversal remains modest in scale, and the upside/downside ratio was fairly balanced: the main contributors to the S&P500's declines were 'defensives' such as Biogen -2.8%, Moderna -2.4%, United Health -2.2% then Alphabet -1.4%, AT&T -1.1%.

The homebuilder sector finished lantern-red, with declines of -2% on average (Pulte Group and DR Horton at -2.5%, Beazer Homes and Lennar at -1.4%).

Among the most outspoken gains: Crowdstrike +2.5%, Palo Alto +2%, Adobe +1.6%, Apple +1.2%, Intel +1%.

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