Wall Street tumbles over 1% after US payrolls data

US stock indices tumbled on Friday after the payrolls report showcased the strength of the labor sector. 

The US economy added 256 thousand new jobs in December, beating estimates of an addition of 164 thousand new jobs, with the previous reading revised to show the addition of 212 thousand jobs. 

US unemployment fell to 4.1% in December from 4.2% in November, beating estimates of 4.2%.

That means the US economy has added 2.2 million jobs in 2024 jobs, a slight drop from the 3 million drop in 2023, but still beating pre-covid numbers of two million in 2019.

Now investors see a 97% chance of no change in Federal Reserve interest rates later this month.

US two-year treasury yields rose by 10 basis points to 4.35% as of 04:56 GMT, while 10-year yields rose by 8 basis points to 4.765%, as 30-year yields rose by over 7 basis points to 4.987%.

On trading, Dow Jones fell 1.4% as of 15:52 GMT to 42,024 points, while S&P 500 fell 1.4%, or 82 points to 5836 points, as NASDAQ shed 1.6%, or 311 points to 19169 points.