Stocks gain, dollar falls after US jobs data; bond yields higher
SPY•US payrolls rose by 29,000, below economists’ 90,000 forecast, and traders lowered bets on an October Federal Reserve rate hike. Major stock indexes rose, the dollar weakened against the euro and yen, and US Treasury yields reversed early declines to finish higher.
1. Jobs miss forecasts
Nonfarm payrolls increased by 29,000 last month after a downwardly revised 133,000 rise in August, compared with economists’ forecast of 90,000. Traders saw about a 21% chance of an October rate hike, down from roughly 26% before the report; expectations for a December hike also fell.
2. Stocks rise, yields turn higher
The Dow rose 0.34%, the S&P 500 gained 0.68% and the Nasdaq advanced 1.14%, after touching a record high early in the session. The 10-year Treasury yield was up 2.18 basis points at 5.256%, while the 2-year yield rose 3.35 basis points to 4.821%, after both initially fell following the jobs data.
3. Dollar and oil decline
The dollar weakened 0.2% against the yen and the euro rose 0.12% to $1.1255. Oil prices fell after reports of talks in Europe on additional diesel and crude stock releases; US crude was down 2.15% at $90.83 a barrel.
