The US labor market report showed a strong recovery, with 336,000 new jobs created in the last month, despite the Federal Reserve’s tightening monetary policy.

The economy’s growth in leisure, hospitality, healthcare, and professional sectors was above expectations.

The US unemployment rate remained at 3.8%, despite interest rates rising from near zero to above 5% since March 2022.

The bond market also experienced a sell-off, with longer-term Treasuries yields rising to 16-year highs.

Rising bond yields could potentially raise borrowing costs and fuel global instability.