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Wall Street stocks edge lower in choppy trading

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US jobs reports show mixed picture ahead of Friday's

payrolls

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Benchmark 10-year yields rise

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Oil prices shed 1%

(Updates headline and prices throughout, adds analyst comment)

By Chibuike Oguh and Alun John

NEW YORK/LONDON, Jan 8 (Reuters) - A global bond selloff

continued on Wednesday, hurting stocks and boosting the dollar,

amid signs that the U.S. economy remains strong, limiting the

prospects of further interest rate cuts.

The benchmark 10-year U.S. Treasury yield rose

to as high as 4.73%, its highest since April 2024, building on

Tuesday's 7 basis point rise. It was last up 0.4 basis points to

4.689%.

"Going into this first quarter that we're in right now,

aside from earnings, I think a big risk for equities is if bond

yields do get to 5%," said Mark Malek, chief investment officer

at SiebertNXT in New York. "Buyers are going to be a little bit

more reticent. So the people that were powering the market

higher, the bid is going to weaken."

The selloff in bonds on Wednesday accelerated after a CNN

report that U.S. President-elect Donald Trump is considering

declaring a national economic emergency to provide legal

justification for a series of universal tariffs on allies and

adversaries.

On Wall Street, all three main indexes were trading lower in

choppy trading, weighed down by utilities, communication

services, technology, and consumer discretionary stocks. Health

care equities were the only group of stocks to advance out of

the 11 in the benchmark S&P 500.

The Dow Jones Industrial Average fell 0.39% to

42,364.56, the S&P 500 fell 0.50% to 5,879.54, and the

Nasdaq Composite fell 0.77% to 19,338.71.

European shares dipped, with the pan-European STOXX 600

finishing down 0.2%, with most regional bourses also in

the red. MSCI's gauge of stocks across the globe

fell 0.59% to 841.95.

European government bond yields surged, with those on the

German benchmark 10-year notes hitting their highest

in about six months. The British 10-year gilt yield

rose over 11 basis points to 4.80%, the highest since 2008.

Strong U.S. economic data have weighed on U.S. Treasuries in

recent weeks, with investors scaling back their expectations for

the size of Federal Reserve rate cuts this year.

Markets are only fully pricing in one 25 basis point rate

cut in 2025, and see around a 60% chance of a second.

Investors will be eyeing Friday's more comprehensive

non-farm payrolls data after data on Wednesday showed a lower

than expected increase in private payrolls and jobless claims.

"Longer maturity bond yields for the most part are going to

be higher if we expect a strong economy and that's really

related to inflation," Malek added.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

rose 0.38% to 109.11, with the euro down 0.32% at

$1.0305.

Oil prices fell more than 1% as a stronger dollar and large

builds in U.S. fuel inventories last week pressured prices.

Brent crude fell 1.12% to $76.20 a barrel, while U.S.

West Texas Intermediate crude fell 1.19% to $73.37.

Gold prices advanced. Spot gold rose 0.22% to

$2,655.39 an ounce. U.S. gold futures rose 0.76% to

$2,676.90 an ounce.