Even after stronger-than-expected U.S. jobs numbers were released and Treasury yields increased, stocks rose on Friday.
Dow Jones Industrial Average increased by 288 points, or 0.9%. While the Nasdaq Composite increased 1.6%, the S&P 500 increased 1.2%. The Dow had dropped up to 270 points before session’s end.
The Labour Department said that the U.S. economy added 336,000 jobs in September. In a Dow Jones survey, economists predicted 170,000 new jobs. Yes, wages increased less than anticipated last month.
The cause of the intraday turnaround was unknown to traders. The weaker pay number in the jobs data, according to some, may have caused investors to change their earlier negative outlook. Other people pointed out the decline in yields from the day’s highs. Given that the S&P 500 was at one point this week down more than 8% from its peak earlier this year, a portion of the rally may simply be due to a market that had been extremely oversold.
The 10-year Treasury rate initially increased after the release, trading close to its highest level in 16 years. Later, the benchmark rate dipped from those highs, although it was still higher by about 6 basis points, at 4.78%.