Surprise Jobs Drop Sends US Stocks Soaring on Rate Hopes
US stocks rose on Wall Street on Friday after the government reported that employers unexpectedly cut 23,000 jobs last month. The S&P 500 gained 0.6% and is hovering around its record set on Tuesday.
The Dow Jones Industrial Average rose 138 points, or 0.3%, while the Nasdaq composite jumped 1.1%. Technology stocks led the way, with Nvidia up 2.3% and Broadcom increasing by 1%.
The bond market reacted strongly to the weaker jobs report, which could give the Federal Reserve more time before raising interest rates to combat inflation. The yield on the 10-year Treasury fell to 4.65% from 4.67% prior to the release of the report.
Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, noted that the weak payrolls print may ease pressure on the Fed to raise rates at its September meeting, but next week's inflation data will still be a deciding factor.