EEToday (5th special correspondent) US stocks rose across the board last Friday (2nd). US September non-farm employment data fell far short of expectations, further cooling market expectations for a Fed rate hike by the end of this month, boosting tech stocks and interest-rate-sensitive shares. However, US Treasury yields dropped sharply earlier before rebounding, limiting the market's gains.
The Dow closed up 250.4 points, or 0.49%, at 51176.96; the S&P 500 rose 56.27 points, or 0.73%, to 7722.72; the Nasdaq gained 319.27 points, or 1.19%, to 27190.86. The Nasdaq hit an intraday record high of 27353.68.
For the week, the Dow dropped about 1.3%, the S&P 500 fell about 0.3%; the Nasdaq rose about 0.5%.
*September non-farm payrolls increase by only 29,000*
The US Department of Labor reported that non-farm payrolls increased by 29,000 in September, far below the market expectation of around 90,000; the unemployment rate rose from 4.1% to 4.2%. In addition, the total number of new jobs in July and August was revised downward by 60,000, with July revised from an increase of 21,000 to a decrease of 10,000, and August revised from an increase of 162,000 to 133,000.
Following the release of employment data, the market quickly lowered expectations for a Fed rate hike by the end of this month. CME FedWatch data showed that the market's probability of the Fed raising rates by at least 25 basis points at its October meeting dropped from 64.2% a week earlier to about 22.7%.
*US 10-year yield rises then retreats*
However, the bond market later reversed course. US Treasury yields initially fell after the employment data release but then rebounded, with the 10-year US Treasury yield rising to around 5.28%, reflecting ongoing market concerns about inflation, energy prices, and geopolitical risks.
Chip stocks performed generally strongly, with the Philadelphia Semiconductor Index rising 2.4%. Nvidia (US.NVDA) rose about 1.3%, hitting an intraday record high; Tesla (US.TSLA) surged 4.7%. AMD also rose nearly 3%. SpaceX (US.SPCX) soared 7.4%.
On the other hand, Nike (US.NKE) shares dropped 3.6%, as the company expects a significant decline in annual revenue and announced layoffs and adjustments to its global business structure; data storage stocks were also weak, with Western Digital (US.WDC) and Seagate (US.STX) both plunging over 10%.
*US dollar index briefly falls below 102*
In the currency market, the US dollar index initially retreated after the weak employment data release, touching above the 102 level earlier, but then fell below the 102 threshold to around 101.9, down 0.1%. The dollar-yen pair first dropped then stabilized, currently at 157.75. The euro-dollar pair fluctuated, hovering near a 16-month low, dipping as low as about 1.121 dollars, currently at 1.125.
Gold prices were dragged down by a stronger dollar and rising US Treasury yields, with spot gold down 0.7% at $4146 per ounce; New York futures gold down 0.6% at $4173.
International oil prices retreated, as the market reassessed news of Middle East supply recovery and European diesel reserve releases affecting supply. New York crude futures are currently at $91.03 per barrel, down 0.077%; Brent crude futures at $102.58, up 0.33%. (yc)
The Dow closed up 250.4 points, or 0.49%, at 51176.96; the S&P 500 rose 56.27 points, or 0.73%, to 7722.72; the Nasdaq gained 319.27 points, or 1.19%, to 27190.86. The Nasdaq hit an intraday record high of 27353.68.
For the week, the Dow dropped about 1.3%, the S&P 500 fell about 0.3%; the Nasdaq rose about 0.5%.
*September non-farm payrolls increase by only 29,000*
The US Department of Labor reported that non-farm payrolls increased by 29,000 in September, far below the market expectation of around 90,000; the unemployment rate rose from 4.1% to 4.2%. In addition, the total number of new jobs in July and August was revised downward by 60,000, with July revised from an increase of 21,000 to a decrease of 10,000, and August revised from an increase of 162,000 to 133,000.
Following the release of employment data, the market quickly lowered expectations for a Fed rate hike by the end of this month. CME FedWatch data showed that the market's probability of the Fed raising rates by at least 25 basis points at its October meeting dropped from 64.2% a week earlier to about 22.7%.
*US 10-year yield rises then retreats*
However, the bond market later reversed course. US Treasury yields initially fell after the employment data release but then rebounded, with the 10-year US Treasury yield rising to around 5.28%, reflecting ongoing market concerns about inflation, energy prices, and geopolitical risks.
Chip stocks performed generally strongly, with the Philadelphia Semiconductor Index rising 2.4%. Nvidia (US.NVDA) rose about 1.3%, hitting an intraday record high; Tesla (US.TSLA) surged 4.7%. AMD also rose nearly 3%. SpaceX (US.SPCX) soared 7.4%.
On the other hand, Nike (US.NKE) shares dropped 3.6%, as the company expects a significant decline in annual revenue and announced layoffs and adjustments to its global business structure; data storage stocks were also weak, with Western Digital (US.WDC) and Seagate (US.STX) both plunging over 10%.
*US dollar index briefly falls below 102*
In the currency market, the US dollar index initially retreated after the weak employment data release, touching above the 102 level earlier, but then fell below the 102 threshold to around 101.9, down 0.1%. The dollar-yen pair first dropped then stabilized, currently at 157.75. The euro-dollar pair fluctuated, hovering near a 16-month low, dipping as low as about 1.121 dollars, currently at 1.125.
Gold prices were dragged down by a stronger dollar and rising US Treasury yields, with spot gold down 0.7% at $4146 per ounce; New York futures gold down 0.6% at $4173.
International oil prices retreated, as the market reassessed news of Middle East supply recovery and European diesel reserve releases affecting supply. New York crude futures are currently at $91.03 per barrel, down 0.077%; Brent crude futures at $102.58, up 0.33%. (yc)
