Stocks rally on strong US payroll report, but Middle East tensions dampen sentiment

From Nasdaq: 2024-10-04 14:41:19

Stocks rallied today with the S&P 500 up by +0.23%, Dow Jones up by +0.05%, and Nasdaq up by +0.52% following a stronger-than-expected US Sep payroll report showing a +254,000 increase. However, escalating conflict in the Middle East has dampened sentiment.

US and allies warned of “uncontrollable escalation” in the Middle East after Israeli bombing near Beirut airport targeting Hezbollah, Markets await Israeli response to Iran’s missile barrage.

US Sep nonfarm payrolls rose +254,000 with unemployment rate falling to 4.1%, beating expectations. Sep average hourly earnings increased by +0.4% m/m and +4.0% y/y, stronger than forecasts.

Dec 10-year T-note yield rose +10.2 bp to 3.948% after Sep payroll report pointed to stronger labor market reducing chances of -50 bp rate cut at FOMC meeting.

European bond yields rise, 10-yr German bund yield up to 2.239%. French Aug industrial production increased +1.4% m/m.

Chip stocks like AMD, Broadcom, ON Semiconductor, Intel, and more are up over +2%. CVS Health, Vistra Corp, Abercrombie & Fitch, Light & Wonder Inc, and others have notable stock movements.

Homebuilders like DR Horton, Lennar, PulteGroup, Toll Brothers down over -3% on 10-yr T-note yield rise. Shipping stocks, Rivian Automotive, Azek Co, Dine Brands Global, and Verizon Communications also face declines.

Earnings reports from Apogee Enterprises Inc, Golden Matrix Group Inc, Park Aerospace Corp, and Village Super Market Inc are scheduled for today.



Read more at Nasdaq: Stocks Supported as US Payroll Report Underscores Economic Strength