Dow Surges on Jobs Miss, Treasury Yields Retreat
The Dow Jones Industrial Average saw a significant gain of 406 points, or 0.8%, in morning trading, thanks to the strong performance of Nvidia and Caterpillar shares.
Caterpillar's stock jumped approximately 3.7% while Nvidia gained around 2.8%. The two stocks collectively contributed about 219 points to the Dow's advance.
The rally came after the September employment report revealed that the U.S. economy added only 29,000 jobs, falling short of the estimated 90,000 expected by economists.
The softer labor data led to a decrease in Treasury yields, with the 10-year yield dipping towards 5.17% and the two-year yield approaching 4.72%. This development benefited Nvidia, as higher yields can make bonds more competitive with expensive technology stocks, putting pressure on highly valued growth stocks.
Caterpillar also supplied a cyclical boost, rising over $30 per share and significantly impacting the price-weighted Dow. The move highlighted how Friday's rally extended beyond technology, with industrial and cyclical stocks benefiting from lower oil prices and calmer bond markets.