Markets dip after strong US jobs report

Markets were mixed on Friday.

The S&P 500 fell 0.2 percent and the STOXX Europe 600 fell 0.7 percent.

Earlier in the day, though, Asian stocks rose. The Nikkei 225 and the Shanghai Composite both rose 0.2 percent.

Investor sentiment turned down after a report showing that the US economy created 224,000 new jobs in June. That lowered expectations for a 50-basis-point rate cut by the Federal Reserve in July although a 25-basis-point cut is still expected.

“I don’t think it is large enough to steer them away from an interest-rate cut,” said Carl Tannenbaum, chief economist at Northern Trust.

“I think we’ll get 25 basis points. Anything more is hallucinatory,” said Brian Bethune, chief economist for Alpha Economic Foresights.