The stock market was having trouble figuring out where it wanted to go in the wake of the strong jobs report.
The Dow was up as much as 109 points at the open. Then it was down 24 points. And now it's near the highs of the day.
The U.S. economy added 195,000 jobs in June, beating expectations for a gain of 165,000.
The unemployment rate was unchanged at 7.5%.
Strength in the labor market has more people convinced that the Federal Reserve will begin to taper, or gradually reduce, it's stimulative bond buying program.
"In light of the better-than-expected labor market data over the past few months, we are bringing forward our call for the Fed tapering QE purchases from the December FOMC meeting to the September meeting," said Goldman Sachs' Jan Hatzius. "We expect that purchases may be reduced from the current rate of $85bn per month to $65bn per month, with most or all of the adjustment occurring through reduced Treasury purchases."
This puts Goldman right in line with the Fed's own internal forecasts for tapering.
With such a big buyer in the bond market pulling out, interest rates are expected to rise.
Indeed, the 10-year Treasury note yield got as high as 2.7% earlier today.
A modest rise in rates is typically come with growing economies. However, should interest rates spike to rapidly, both the economy and the stock market would be at risk.