Nvidia Smashes Records as Treasury Yields Plummet Amid Weak Jobs Report
The US economy added only 29,000 jobs in September, falling short of the expected 90,000 and marking a significant slowdown from previous months. This comes as the unemployment rate rose to 4.2%. The underwhelming job numbers led to Treasury yields falling, with the 10-year yield briefly dropping to around 5.17%, down from its previous day's high near 5.34%.
The stock market, however, seemed unfazed by the weak jobs report, with the Nasdaq Composite and Nvidia leading the charge higher. Tech and growth stocks, including AI and chip names such as Nvidia (NVDA.US), Broadcom (AVGO.US), and Advanced Micro Devices (AMD.US), advanced significantly.
The market's logic is straightforward: a softer labor market reduces the urgency for further Fed tightening, pushing Treasury yields lower and easing valuation pressure on tech stocks. This has led to renewed appetite for rate-sensitive growth stocks, with Nvidia hitting an intraday record high.
Despite this rally, experts caution that investors appear more focused on relief from high rates than on growth concerns. If upcoming labor and consumer data weaken further, the balance could shift and test today's rally.