This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribenonfarm payrolls soared by 336,000
The number of jobs the U.S. economy added in September was so unexpectedly high that markets fell right on cue. But what happened after was a lesson in looking beyond the headline number. Like actors in a play, different parts of the market started to follow a well-rehearsed script. More investors grew convinced the Federal Reserve, forced by the stronger-than-expected labor market, would raise interest rates at its November meeting. Theretreated 0.9% at their lowest points during the day. Completing the trifecta, U.S. Treasury yields rose, with the 10-year yield hitting a 16-year high at 4.887% earlier Friday.
Indeed, as of Monday morning, investors are betting there's only a 13.7% chance — a 30 percentage point drop from Friday — the Fed will raise rates in November.