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As the Market Prepares for Its Best Week of 2023, Stocks Rise On the Weak Jobs News

In closing the best week for the stock market in 2023, stocks gained on Friday following a weak jobs report that lowered bond yields.

1.65 points, or 0.5%, were added to the Dow Jones Industrial Average. S&P 500 increased by 0.5%, while the Nasdaq Composite had a 0.4% increase.

The expectation among investors that the Federal Reserve’s campaign of rate hikes will end has put stocks on track for significant weekly gains. The Dow is up five percent as of Thursday’s close. Heading into their greatest week since November 2022, the S&P 500 is expected to rise 5.6% for the week, while the Nasdaq is up 5.8%.

The October jobs data, which was released on Friday, proved that the Federal Reserve’s efforts to curb inflation and cool the economy may be having some effect. The United States economy added 150,000 jobs last month, which was less than the 170,000 payrolls gain consensus projection from Dow Jones and less than the stunning 297,000 job additions in September. Contrary to predictions that it would remain stable at 3.8%, the jobless rate increased to 3.9%.

In October, average hourly wages increased by 0.2% instead of the expected 0.3%, which was a monthly decline from forecasts.

The poorer-than-expected payroll data and smaller average hourly wages gain on Friday sent bond yields, which have been a drag on the stock market for the past three months, plunging. From its peak of 5% last month, the yield on the 10-year Treasury fell by more than 9 basis points to 4.57%. The yield on the 2-year Treasury fell to 4.9%, a loss of 7 basis points.

Source (CNBC)

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