US stocks jump on rate optimism
SPY•U.S. stocks rose Friday after weaker-than-expected jobs data reduced traders’ bets on a Federal Reserve rate hike later this month. The Nasdaq Composite gained 1.19%, the S&P 500 rose 0.73% and the Dow added 0.49%.
1. Stocks rise after jobs data
U.S. stocks gained Friday, and the Nasdaq Composite reached an intraday record high, after employers added 29,000 jobs last month, below economists’ 90,000 estimate. Traders priced in a 23% chance of a rate hike at the Fed’s October 27-28 meeting, down from 26% on Thursday and nearly 70% earlier in the week.
2. Yields continue climbing
The 10-year Treasury yield rose just over 4 basis points to about 5.28%. It was up around 10 basis points for the week and on track for a fifth consecutive weekly increase. The Nasdaq 100, S&P 500 technology index and S&P growth index closed at record highs.
