Bond yields at the highest level since 2018

Global stock markets fell further on Friday as investors became more concerned that the Fed may not be able to rein in inflation for years to come, even as US data showed wage growth slowing in April. US labor market data showed the jobless rate rising to 3.6% from 3.5% a month earlier as job growth moderated. Average hourly earnings grew 5.5% from a year earlier, down from the previous month's increase. Even though data on employment and salary growth slowed down in recent months, the market seems to have leaned toward an inflationary environment that the Fed will not be able to face with the rate hikes they gave disclosed at their last meeting. And because of this market sentiment, Fed funds futures are already pricing in about a 75% chance of a 75-basis point rate hike at next month's policy meeting. However, Jerome Powell said that the US central bank was not considering such a move.