US stocks rose in morning trading on Wall Street Friday after the government reported that employers unexpectedly cut 23,000 jobs last month. The S&P 500 rose 0.4% and is hovering around the record it set on Tuesday. The Dow Jones Industrial Average rose 114 points, or 0.2%, as of 9:55 a.m. Eastern time. The Nasdaq composite rose 1%. Every major index is on track for weekly gains.
Job Market and Interest Rates
Technology stocks, with their big market values, did much of the heavy lifting for the broader market. They are often the heaviest weights determining the market’s direction. Nvidia jumped 1.3% and Broadcom rose 1.1%. The bond market reacted more strongly to the weaker signal on the job market, which can be seen as allowing the Federal Reserve more time before raising interest rates to fight inflation.
The yield on the 10-year Treasury fell to 4.63% from 4.67% just prior to the jobs update. The yield on the two-year Treasury, which more closely tracks expectations for Fed action on interest rates, fell to 4.19% from 4.22% prior to the report’s release. Overall, the report paints a dimmer picture of the jobs market, which has been one of the brighter areas of the economy amid rising inflation and worries about household spending.
Original reporting: NBC10 Boston — read the source article.
