Volatility continued to dominate financial markets, with stocks pushing lower as the latest U.S. jobs data cemented expectations the Federal Reserve will remain on its rate-hike path to combat stubbornly high inflation.

At the end of a week marked by fickle trading, quick reversals and heightened anxiety, the S&P 500 failed to stay in the green and fell to its lowest level in about a year. The gauge posted its fifth straight weekly drop -- the longest losing streak since June 2011. The tech-heavy Nasdaq 100 underperformed. Treasury 10-year yields remained above 3 per cent, while the dollar rose. Gasoline futures in New York settled at a record high.

“The markets have been on a roller-coaster ride,” said Lindsey Bell, chief markets and money strategist at Ally. “There is a significant amount of uncertainty. A key question for many investors is how big of a hurdle a quickly rising interest-rate environment is going to be for stocks to overcome.”

The long-awaited jobs report showed U.S. hiring advanced at a robust pace in April, yet a smaller labor force may increase pressure on employers to boost wages even more to bring workers back. That dynamic will likely complicate the Fed’s fight to tame decades-high inflation, as central bankers work to bring labor demand in line with supply.

More comments:

• “No big surprises from today’s jobs report -- it largely confirms that the labor market remains tight, affording the Fed the flexibility to tackle its price stability mandate head-on,” said Jason Pride, chief investment officer of private wealth at Glenmede.
• “Investors just can’t confidently buy stocks as too much uncertainty persists with what will happen with global growth and how far the Fed will take tightening beyond the summer,” wrote Ed Moya, senior market analyst at Oanda.

Some of the main moves in markets:

Stocks

• The S&P 500 fell 0.6 per cent as of 4 p.m. New York time
• The Nasdaq 100 fell 1.2 per cent
• The Dow Jones Industrial Average fell 0.3 per cent
• The MSCI World index fell 1 per cent

Currencies

• The Bloomberg Dollar Spot Index rose 0.2 per cent
• The euro was little changed at US$1.0547
• The British pound fell 0.2 per cent to US$1.2342
• The Japanese yen fell 0.3 per cent to 130.54 per dollar

Bonds

• The yield on 10-year Treasuries advanced eight basis points to 3.12 per cent
• Germany’s 10-year yield advanced nine basis points to 1.13 per cent
• Britain’s 10-year yield advanced three basis points to 2.00 per cent

Commodities

• West Texas Intermediate crude rose 2.1 per cent to US$110.49 a barrel
• Gold futures rose 0.3 per cent to US$1,881.60 an ounce