Unilever.edu.vn observes a surge of optimism on Wall Street as the US job market shows signs of cooling. This development has fueled hopes that the Federal Reserve might hit the brakes on interest rate hikes.
The Dow Jones Industrial Average witnessed a significant upswing, gaining nearly 7/10 of a percent. The S&P 500 followed suit, climbing by more than 9/10, while the tech-heavy NASDAQ surged by almost 1.4%.
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This positive market sentiment stems from the latest Labor Department data, which revealed a more moderate pace of job growth in October. The economy added 150,000 jobs, falling short of expectations. This figure can be partly attributed to the strikes impacting the “Big Three” automakers in Detroit.
Further solidifying the trend of easing job growth, the unemployment rate inched upwards to 3.9%, while September’s job addition figures were revised downwards.
Dryden Pence, Chief Investment Officer at Pence Capital Management, remarked, “We are transitioning into a more normalized job growth distribution, likely accompanied by a more stabilized unemployment rate. A slight uptick to 3.8 or 3.9 provides the Federal Reserve with more justification to maintain their current stance—essentially hitting the pause button.”
He further elaborates, “The focus has shifted from the magnitude of rate hikes to their duration. The Federal Reserve is seemingly content to let this extended period of moderate growth run its course.”
The positive ripple effect of the payroll data extended to US Treasury yields, which trended downwards for the fourth consecutive session. Notably, the benchmark 10-year Treasury yield dipped to its lowest point in over five weeks.
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The tech sector, known for its sensitivity to interest rate fluctuations, also enjoyed the positive momentum. Industry giants like Microsoft and Google’s parent company, Alphabet, saw their stock prices rise.
However, Apple didn’t share the same fate. The tech giant’s stock value dipped by half a percent following a lackluster holiday sales forecast.
Block, the parent company of the Square payments platform, experienced a surge of over 10.5% in its stock price. This positive movement was fueled by the company’s decision to raise its annual adjusted profit forecast.
In contrast, cybersecurity firm Fortinet faced a decline of nearly 12.5%. This downturn came on the heels of a disappointing fourth-quarter revenue forecast.
