Stocks Rise as Surprise Job Cuts Ease Inflation Fears
US stock futures surged on Friday after a surprise report showed employers cut 23,000 jobs last month. This unexpected job market weakness boosted investors' confidence that inflation will remain under control.
The S&P 500 futures rose by 0.5%, while Dow Jones Industrial Average futures gained 0.33%. Meanwhile, bond yields dropped sharply, with the yield on the 10-year Treasury falling to 4.60% from 4.67% just before the report was released.
Global shares were mixed, but Germany's DAX index rose by 1% in midday European trading. The price of Brent crude oil fell 0.7%, after rising nearly 4% on Thursday due to progress toward reopening the Strait of Hormuz.
The Strait of Hormuz is a vital waterway for securing stable oil supplies, and its potential reopening has been a topic of interest for markets. Iran has said it is close to a deal with Oman to reopen the strait, but US President Donald Trump's administration has ruled out Iran charging fees to ships.