Robust U.S. jobs data open door to outside risk of full-percentage-point Fed rate hike this month

Last Updated: July 8, 2022 at 2:24 p.m. ET First Published: July 8, 2022 at 2:23 p.m. ET

Following an unexpectedly robust jobs report that had many dismissing fears of a U.S. recession, a line of thinking re-emerged in some parts of the financial market on Friday as investors turn to next week’s June consumer price index report.Traders in federal funds futures now see a 7% chance that the Federal Reserve could deliver a 100-basis-point, or full-percentage-point, rate hike in three weeks; that’s up from a zero-percent chance seen throughout the past month, according to the CME FedWatch Tool. Strategists said the market is comfortable pricing in a “nonzero” chance of a rate hike of greater than 75 basis points…