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Stocks fell again on Wall Street and Asian shares tumbled on Friday as strong jobs data dampened hopes of a halt to rating gains.

U.S. futures fell, while oil prices rose.

Investors were closely watching for updates on U.S. Treasury Secretary Janet Yellen’s trip to Beijing, where she met with senior Chinese officials on a number of issues to ease tensions and boost global financial stability

Tokyo’s Nikkei 225 fell 1.2% to 32,388.42, while Hong Kong’s Hosei lost 0.8% to 18,384.17. The Shanghai Composite fell 0.3% to 3,197.42, while Australia’s S&P/ASX 200 fell 1.7% to 7,042.30.

India’s Sensex fell 0.6%, while Bangkok’s SET lost 0.3%.

Friday’s jobs report is likely to have a bigger impact on Wall Street than any other report this week.

A strengthening U.S. labor market lifted the economy out of a prolonged panic, but could prompt the Federal Reserve to keep interest rates higher for longer to ward off high inflation. That could mean more pressure on the global economy and financial markets.

ADP said in a report that U.S. private employers were hiring stronger than economists expected last month, adding nearly twice as many jobs as expected.

But a separate report found that the number of U.S. workers filing for unemployment benefits remained down from historical levels last week, but slightly more than expected.

Last year, the Fed raised the federal funds rate to five basis points from near zero in an effort to curb the worst sluggish economic growth in decades.

Stephen Innes of SPI Asset Management commented: “As the U.S. growth trajectory improves, it is increasingly difficult to imagine what would lead to a near-term Fed rate cut, as many market participants expect. Challenging.”

The S&P 500 fell 0.8% to 4,411.59 on Thursday. The Dow Jones Industrial Average fell 1.1% to 33,922.26 and the Nasdaq Composite lost 0.8% to 13,679.04.

Other reports on Thursday offered a more nuanced picture. Employers posted fewer jobs than expected in May, a person familiar with the matter said. This means that upward pressure on inflation has eased. Meanwhile, a separate report said growth in the U.S. services sector remained hot and accelerated in June.

Friday’s jobs report is likely to have a bigger impact on Wall Street than any other report this week.

Bond market yields rose sharply as traders increased bets that the Fed would keep interest rates higher than previously expected. Hopes for a rate cut early next year have been dashed.

The 10-year Treasury yield rose to 4.04% from 3.94% late Wednesday. It helps determine interest rates on mortgages and other important debts.

The two-year yield rose to 4.99% from 4.95%, driven by Fed expectations. The last time it was at that level was in early March, when the collapse of several U.S. banks shook confidence in financial markets.

On Wall Street, ExxonMobil fell 3.7%, weighing on the market.

Shares of JetBlue Airways fell 7.2% after announcing that it was ending its partnership with American Airlines. JetBlue will focus on defending its proposed acquisition of Spirit Airlines. American Airlines fell 2.4%.

Meta Platforms Threads, the parent company of Facebook, Instagram and WhatsApp, has vacillated between small profits and losses after launching new apps. Threads, a Twitter competitor, has had a rocky ride under new owner Elon Musk. Meta fell 0.8%.

In other trading on Friday, U.S. benchmark crude rose 33 cents to $72.13 a barrel in electronic trading on the New York Stock Exchange. It rose 1 cent to $71.80 on Thursday.

Brent crude, the internationally traded benchmark, rose 33 cents to $76.85 a barrel.

Against the yen, the dollar fell to 143.39 yen from 144.06 yen. The euro rose to $1.0889 from $1.0890.

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