Stock indexes rise on strong US labor data, signaling a strong economy.

From Nasdaq: 2024-04-05 13:03:15

Stock indexes are up this morning, driven by optimism over the US economy. The S&P 500 is up +0.88%, the Dow Jones is up +0.58%, and the Nasdaq 100 is up +1.15%. US nonfarm payrolls rose by +303,000 in March, exceeding expectations and raising concerns about higher interest rates.

Stocks are trading higher despite strong US payroll data. Wage pressures eased with average hourly earnings at +4.1% y/y, helping support stocks. However, T-note yields jumped on speculations that the Fed won’t cut rates. Dallas Fed President Logan’s comments highlight concerns about inflation, impacting bond yields negatively.

Interest Rates saw June 10-year T-notes decrease on strong payroll data, pushing the yield up to 4.362%. T-notes dipped further due to inflation expectations and hawkish comments from Dallas Fed President Logan. European government bond yields are also moving higher, with German bund yield up to 2.383% and UK gilt yield at 4.061%.

Stock movers include Agilent, Conagra Brands, and Uber Technologies among the gainers. Shockwave Medical jumped after Johnson & Johnson acquisition news. Krispy Kreme and Vertiv Holdings saw gains too. Meanwhile, Lamb Weston Holdings and Intel are among the losers. Telecommunication stocks like AT&T, Verizon Communications, and Charter Communications are under pressure.

Earnings reports today include CXApp Inc, DZS Inc, Greenbrier Cos Inc, and Maxeon Solar Technologies Ltd. Market news from Barchart, all information for informational purposes only. Rich Asplund has no positions in securities mentioned. Views expressed are solely those of the author.



Read more at Nasdaq: Stocks Gain as US Labor Strength Signals a Strong Economy