Such a strong report would normally be cheered by investors, because it brightens the outlook for economic growth and expanding corporate profits. But this one dampens expectations for Federal Reserve interest rate cuts later this year. In terms of the rate cuts that [are] now priced in. En masse, they are becoming more cautious about executing future rate cuts. While a strong labor market is good for the U.S., there are worries that too strong of a jobs market will put reflation back on the table."

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Persons: Saira Malik, Peter Boockvar, Lindsay Rosner, Thomas Simons, Jack McIntyre, Bret Kenwell, Jon Tower Organizations: Dow, Dow Jones Industrial, Nasdaq, Federal Reserve, Bleakley, Goldman Sachs Asset Management, Jefferies, Brandywine, Fed, Citigroup Locations: U.S, We've