The economy added 531,000 jobs to nonfarm payrolls in October, beating the median forecast for a gain of 450,000.
The rising demand for goods and services will subside over time, said former Fed chair Alan Greenspan. It's the country's debt he is concerned about.
"If the recent pace of elevated inflation continues, that could push the Federal Reserve to start removing accommodation sooner," a portfolio manager said.
"The Nasdaq is the punching bag as global bond yields rise," Edward Moya of Oanda said. The yield on the 10-year Treasury note rose to 1.484%.
Bitcoin and major altcoins, as well as crypto-linked stocks, all tumbled on news that China will put a blanket ban on digital asset transactions.
"Progress in the labor market is the missing piece of the puzzle for the Fed to set into motion," a managing director said.
The Fed chair said inflation data so far has been higher than expected, but is linked to a small group of goods and services tied to the reopening.
'We'll still be in a very accommodative position with a low funds rate,' SF Fed President Mary Daly said about the Fed's asset purchases.
Spot gold rose to as high as $1,816 per ounce Tuesday morning, reaching its highest level since June 17.
A 'transitory tantrum', if inflation is lower than expected, would prompt a sell-off in securities that protect against inflationary pressures, says Morgan Stanley.