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Risk appetite has returned to the markets
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Loading...Stocks traded higher on Friday following the release the latest U.S. jobs report, trimming their losses for the week.
Tech was the best-performing sector in the S&P 500, gaining 0.9% as Apple rose 1.9%. The tech giant’s stock rose after Nikkei reported the company is increasing iPhone 11 production by 10%.
The U.S. economy added 136,000 jobs in September, the Bureau of Labor Statistics said Friday. Economists polled by Dow Jones expected an increase of 145,000 jobs. The unemployment rate fell to 3.5%, a 50-year low, but wages grew ta a slower-than-expected pace last month.
Treasury yields briefly jumped before giving back those gains.
The Federal Reserve is largely expected to cut rates later this month. Expectations for a 25 basis-point rate cut were at 79% on Friday, according to the CME Group’s FedWatch tool.
Rate-cut expectations surged on Thursday following the release of disappointing data on the U.S. services sector. The increasing hope of lower Fed rates led to a sharp rebound on Wall Street as the Dow recovered from a 335-point deficit to close higher.
Wall Street will be watching speeches by Fed officials later in the day, including Chairman Jerome Powell.
Friday’s gains cut into Wall Street’s weekly losses, but the major indexes were still on pace to post a three-week losing streak.
Those weekly losses came after a dismal U.S. manufacturing data report sparked fears of a potential recession in the U.S.
Trader Georgi Bozhidarov Read more:
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