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US stocks jumped on Friday after a cool jobs report took pressure off of interest rates.
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The US economy added 150,000 jobs in October, just shy of the 180,000 estimate.
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The unemployment rate ticked up to 3.9% from 3.8%, and wage growth slowed down.
US stocks jumped on Friday, extending their week-long rally, after the October payrolls report showed some easing in the labor market that could give the Federal Reserve more breathing room on monetary policy.
The addition of 150,000 jobs last month was shy of the 180,000 economists were expecting, with nearly all of the miss being driven by strikes at the Big Three automakers. The unemployment rate ticked higher to 3.9% from 3.8%, and wage growth cooled to its lowest since 2021.
The data took pressure off of interest rates, and the Fed, as evidenced by the 10-year US Treasury yield falling 17 basis points to just under 4.5%, a far cry from its 5% level just over a week ago.
“The good news here is that the slowdown will likely keep the Fed on the sidelines going forward. One of their key concerns has been an overheated economy, especially after last quarter’s GDP growth, and this suggests that problem is going away. Slower growth is still growth, and this jobs report is still in the sweet spot,” Brad McMillan, CIO for Commonwealth Financial Network, said.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil rose 0.44% to $82.82 a barrel. Brent crude, the international benchmark, climbed 0.32% to $87.13 a barrel.
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Gold edged up 0.72% to $2,007.80 per ounce.
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The 10-year Treasury yield fell 16 basis points to 4.50%.
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Bitcoin fell 0.90% to $34,381.
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