Weaker Jobs Report Boosts Stocks Amid Rate Hike Uncertainty
US stocks saw an unexpected boost in morning trading on Wall Street Friday after the release of the latest jobs report. Employers unexpectedly cut 23,000 jobs last month, a number that's been revised downward by 103,000 from previous months.
The S&P 500 rose 0.4% and is hovering around its record high set just days ago. The Dow Jones Industrial Average jumped 114 points, or 0.2%, while the Nasdaq composite surged 1%. Technology stocks led the charge, with Nvidia rising 1.3% and Broadcom up 1.1%.
The bond market reacted more strongly to the weaker-than-expected jobs report, which could give the Federal Reserve more breathing room before raising interest rates to combat inflation. The yield on the 10-year Treasury fell to 4.63%, down from 4.67% prior to the release of the report.
The Fed has been holding off on rate hikes due to concerns about inflation, particularly in light of rising oil prices following the US war with Iran. A weakening jobs market could make it even more complicated for the central bank to balance supporting job growth with fighting inflation.