Forex
US Stocks Jump on Surprise Job Cuts, Boosting Hopes for Easier Rate Policy
The US jobs market took an unexpected hit last month, with employers cutting 23,000 jobs. Despite this dimmer picture, stocks on Wall Street rose as investors hope for easier rate policy from the Federal Reserve.
The S&P 500 jumped 0.5%, and the Dow Jones Industrial Average rose 118 points, or 0.2%. Tech stocks led the way, with Nvidia up 1.9% and Broadcom rising 1.2%.
The bond market reacted strongly to the weaker jobs signal, which could give the Fed more time before raising interest rates to combat inflation. The yield on the 10-year Treasury fell to 4.65%, while the two-year Treasury yield dropped to 4.20%.