US ADP non-farm payrolls data for June came in much stronger-than-expected at 497,000, versus 190,000 expected.

US ADP non-farm payrolls data for June came in much stronger-than-expected at 497,000, versus 190,000 expected.

The strong data raised expectations that the US Federal Reserve will continue to raise interest rates aggressively in an effort to combat inflation.

As a result, US stock markets were under pressure on Friday, with the S&P 500 down 0.7%, the NASDAQ Composite down 1.1%, and the Dow Jones Industrial Average down 0.5%.

The euro also fell against the dollar, as investors priced in a more aggressive pace of tightening by the Fed.

The yield on the 10-year US Treasury note rose to 3.11%, the highest level since May 2018.

The strong ADP data also boosted commodity prices, with oil prices rising above $100 a barrel and copper prices hitting a 10-week high.

The strong data is likely to keep the Fed on track to raise interest rates by 75 basis points at its meeting later this month.

However, there are concerns that the Fed could raise rates too quickly and tip the economy into a recession.

The stock market is likely to remain volatile in the near term, as investors assess the latest economic data and the Fed's monetary policy stance.

The strong ADP data is a sign that the US economy is still growing, but it also raises the risk of inflation becoming more entrenched.