Weak US Jobs Data Boosts Stocks as Fed Rate Hikes Fade
Wall Street stocks surged yesterday after weak US jobs data reduced the likelihood of Federal Reserve rate hikes. The major indices spent most of the day in positive territory following the disappointing hiring numbers for September.
The S&P 500 finished up 0.7 per cent, with 10 of 11 sectors in positive territory. This was largely due to a lacklustre jobs report that showed employment grew by only 29,000 jobs in September, missing analysts' expectations of around 90,000.
Oil prices retreated as G7 leaders agreed to an emergency release of fuel reserves following the US-Iran conflict. The US benchmark finished down around two per cent at $91.11 per barrel, while international benchmark Brent crude edged down just 0.1 per cent to $102.25 a barrel.
Some analysts believe that this 'bad news is good news' narrative could be a poor trade-off for the economy. eToro analyst Bret Kenwell noted that 'hoping for a weaker labour market just to secure easier financial conditions is a poor trade-off.'