US Markets Rally: Dow, Nasdaq Soar as Treasury Yields Fall Following Weak Jobs Data
US Markets LIVE, 3 November 2023: The US stock market indexes opened higher on Friday as the monthly job report came weaker than expected and the Treasury yield declined.
Dow Jones Industrial Average (DJIA) opened higher by 149.75 points at the 33988.83 level, while the S&P 500 index added 16.45 points and opened at the 4334.23 level. The Nasdaq Composite index opened higher by 68.03 points at the 13362.85 level.
US Markets Live Updates Today
At 11.40 a.m. EDT, The US markets extended their early gains, Dow Jones Industrial Average (DJIA) is trading higher by 216.61 points or 0.64 percent at the 34055.69 level while the S&P 500 is trading up by 38.63 points or 0.89 percent at 4356.41 levels. The tech-heavy Nasdaq Composite Index also extended its early gains and is trading higher by 145.11 points or 1.09 percent at 13439.30 levels.
US Market News
The US stocks are trading higher due to a softer-than-expected monthly job report which led to a fall in Treasury yields for the third consecutive day. According to the Labor Department, the US economy added 150,000 jobs in the month of October, which is below the market expectation of 170,000 and substantially lower than the previous month.
The report showed the unemployment rate rose to 3.9% as compared to expectations that it would remain steady at 3.8%. The report also showed that the average hourly earnings also missed expectations on a monthly basis, it rose to 0.2% in October below the estimation of 0.3%.
The bad news for the labor market is good for the equities, markets cheered as this confirmed the hopes that the central bank’s aggressive monetary tightening may be coming to an end.
The surge in Treasury yields, which have weighed on the stock market for the last three months made a substantial fall on Friday after the monthly job report.
The 10-year Treasury yield declined to 4.500%, it was settled at 4.663% on Thursday. The ISM services PMI reading came in at 51.8 in October, below the expectation of 53.
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US Stocks In News
The shares of Apple fell more than 1% due to a weak revenue outlook for the fourth quarter. However, the iPhone maker beat on top and bottom lines in its fiscal fourth quarter.
The shares of Fortinet declined more than 16% after the cybersecurity company missed revenue expectations and presented a weak outlook for the current quarter.
The financial technology stock Block surged more than 13% as the company reported upbeat third quarterly earnings.
The software company Bill Holdings’ share fell more than 28% after it lowered its earnings and revenue guidance for the full fiscal year.
Crude Oil Prices
Crude oil prices erased intraday gains and trading marginally lower due to disappointing US monthly job data. The latest US job report fueled concern that the US economy, the largest crude consumer in the world may be slowing.
The US WTI crude is trading lower by 0.75% at $81.84 per barrel while London-based Brent crude oil is also down by 0.91% at $86.06 per barrel.
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US Markets at Close
The US stock markets ended higher and closed the week with significant gains, as US monthly job reports came lower than expected. Investors cheered as this confirmed the hopes that the Fed has finished its aggressive rate hiking cycle. The 10-year Treasury yield slipped to 4.519%, it was settled at 4.663% on Thursday. Dow Jones gained 222 points or 0.66% and closed at 34061, while the S&P 500 index was up by 40.56 points or 0.94% and settled at 4358 level. The tech-heavy Nasdaq composite jumped 184 points or 1.38% and ended at 13478 level on Friday.
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