Nasdaq hits record high after softer jobs data cuts rate-hike bets
SPY•U.S. stocks rose after weaker-than-expected jobs data reduced rate-hike bets and Treasury yields fell, with the Nasdaq Composite up 1.66% to a record 27,319.43. Traders put the chance of a 25-basis-point October Fed hike at 20%, down from 26%.
1. Jobs data lifts stocks
U.S. stocks rose Friday after payrolls increased by 29,000 last month, below economists’ forecast of 90,000, and prior-month figures were revised sharply lower. The Dow rose 0.60%, the S&P 500 gained 1.02% and the Nasdaq Composite climbed 1.66% to a record high.
2. Rate bets and sectors
Traders assigned a 20% probability to a 25-basis-point Federal Reserve rate hike in October, compared with 26% before the jobs report. The two-year Treasury yield fell for a second straight day, while semiconductor stocks and megacaps led gains; the Philadelphia semiconductor index rose 3.1%.
3. Company moves
Nike fell 5.6% after forecasting a steep annual revenue drop due to weakness in China, announcing job cuts and plans to reorganize its global business divisions. Moderna rose after news of its inclusion in the Nasdaq-100 index.
