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(Sharecast News) - US stocks rose on Friday after a weaker-than-expected payrolls number tempered rate-hike expectations, with bond yields continuing to pull back after their recent highs.
The Dow was up 0.5% after 30 minutes of trade, while the S&P 500 rose 1.0% and the Nasdaq jumped 1.6%, with strong gains from AI and chip names such as Nvidia, AMD and Broadcom. Micron Technology was pulling back slightly after rising the previous session following a bumper set of results.
The 10-year US Treasury yield was down 3.7 basis points at 5.205%, falling for the second straight day after hitting its highest since 2002, after data from the Bureau of Labor Statistics revealed that non-farm payrolls rose by just 29,000 in September while the unemployment rate ticked up to 4.2%. Payrolls had been expected to increase by 84,000 last month, while the unemployment rate was forecast to be unchanged from 4.1% in August.
There was also a 29,000 downward revision for August's job numbers, while July's data was revised down to show that 10,000 jobs were lost, versus a 21,000 gain previously reported.
The data raised hopes that the Federal Reserve will keep rates on hold at its meeting `this month after tightening policy last month.
Axel Rudolph, chief technical analyst at IG, said the figures "suggest the labour market is losing momentum much faster than expected, while the near-stalling in wage growth adds to the evidence that inflationary pressure from employment is easing".
He added: "With July and August payrolls now 60,000 lower than previously reported, the case for the Federal Reserve to no longer hike rates this year becomes harder to ignore, although the weakness also raises fresh questions about the health of the wider US economy."
Meanwhile, front-month Brent crude futures were down 3.1% at $99.15% a barrel on the back of reports that the EU is considering releasing fuel reserves.
In other news, Nike dropped sharply after guiding to a sharper-than-expected decline in annual revenues after the close on Thursday. The sportswear giant attributed the gloomier outlook to difficulties in the Chinese market, as it also announced a wave of job cuts to start next year.
Tesla was firmly higher despite the news that third-quarter EV sales fell 2% on the back of a US market slowdown, though its energy business saw 9.6% growth over last year.