US Stocks Surge on Weaker-than-Expected Jobs Report

The US stock market rallied on Friday morning as investors reacted to a weaker-than-expected employment report. The report showed that employers unexpectedly eliminated 23,000 jobs last month, which strengthened expectations that the Federal Reserve could have more room before increasing interest rates to curb inflation.

The S&P 500 advanced 0.4%, remaining close to the record high it reached on Tuesday. The Dow Jones Industrial Average gained 114 points, or 0.2%, while the Nasdaq composite climbed 1%. Large-cap technology companies such as Nvidia and Broadcom provided much of the market's upward momentum.

The response in the bond market was more pronounced, with the yield on the benchmark 10-year Treasury note declining to 4.63% from 4.67% immediately before the employment data was released. The two-year Treasury yield fell to 4.19% from 4.22%, reflecting investors' expectations of a softer Fed policy.