From Bloomberg

• "Stocks fell and key Treasury bond yields rose back above 4% after robust US data undercut wagers on a big interest-rate reduction next month from the Federal Reserve.

• Contracts on the S&P 500 shed 0.5% while Nasdaq 100 futures fell 0.6%. Ten-year and two-year US Treasury borrowing costs topped 4% for the first time since August, extending gains from Friday, when the monthly US jobs number blew past expectations. Swaps markets have moved to pricing less than a quarter-point rate cut next month, having expected a 50 basis-point move until recently. 

• Europe’s Stoxx 600 equity index also edged lower and bond yields rose across the continent.

• The shifting rate expectations are likely to weigh on equity markets, which have rallied to record highs recently amid signs of a robust US economy, easing inflation and big rate cuts. In addition, crude oil prices pushed higher to approach $80 a barrel, as investors await Israel’s response to the recent Iranian missile strike.

• Marija Veitmane, head of equity strategy at State Street Global Markets, said she still remains constructive on the equity outlook as economies remain resilient and inflation is easing. However, “we have to be a bit careful in terms of drivers, as we will probably not get a lot of big aggressive rate cuts,” Veitmane said on Bloomberg TV."