US Stocks Jump on Surprise Job Cuts, Raising Hopes for Rate Delay
US stocks jumped on Wall Street after the government reported that employers unexpectedly cut 23,000 jobs last month. The S&P 500 rose 0.6%, topping its all-time high set on Tuesday, while the Dow Jones Industrial Average rose 0.3% and the Nasdaq composite added 1.3%. This weaker signal on the job market has raised hopes that the Federal Reserve can wait longer before raising interest rates to fight inflation.
The yield on the 10-year Treasury fell to 4.64%, while the price of Brent crude rose 1.3% to $83.55 a barrel. European markets also rose, but Asian markets ended mixed. Technology stocks like Nvidia and Broadcom did much of the heavy lifting for the broader market.
The weaker job market signal has given investors more time before the Federal Reserve raises interest rates to fight inflation. However, some analysts caution that this may not necessarily lead to stronger economic growth, as a weakened jobs market can become even shakier under higher interest rates.