STAN HONDA/AFP via Getty Images)
- US stocks rebounded sharply Friday, after a spike in bond yields in the morning.
- September's jobs report came in hotter than expected, and could indicate higher Federal Reserve rates.
- The United Auto Workers indicated significant progress in talks with carmakers, helping boost market optimism.
US stocks rebounded sharply Friday, reversing an early sell-off triggered by surging Treasury yields and a labor market spike.
The September payroll report showed 336,000 positions were added, well above forecasts for 170,000, while unemployment remained at 3.8%.
The metric underlines continued economic resiliency, and could force the Federal Reserve to keep raising interest rates. As a result, the bond market sell-off accelerated Friday morning, with the 10-year yield soaring as much as 14 basis points before paring some gains.
"Odds of a rate hike in November rose after the latest jobs report, now slightly above a 30% chance. Given the strength in hiring last month, investors and policy makers will put even more emphasis on next week's CPI release. Expect some choppy markets in the meantime," Jeffrey Roach, chief economist for LPL Financial said. "Since most of the job gains were in sectors with lower paying jobs, this report is not necessarily giving markets an inflationary signal."
Equities found some support in the auto sector, with the United Auto Workers forgoing further strikes thanks to a key concession from General Motors, Bloomberg said.
Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:
- S&P 500: 4,308.50, up 1.18%
- Dow Jones Industrial Average: 33,407.58, up 0.87% (288.01 points)
- Nasdaq Composite: 13,431.34, up 1.60%
Here's what else happened today:
- Treasury yields could be headed to 6% as the Fed will keep raising interest rates, a research firm said.
- Income would have to spike 55% for the housing market to be deemed affordable.
- Drugs like Ozempic are slamming food retailers and producers on worries of lower demand.
- China isn't actually shedding Treasurys — it's just diversifying its US debt holdings, a former official said.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil edged up 0.68% to $82.87 a barrel. Brent crude, the international benchmark, gained 0.6% to $84.58 a barrel.
- Gold inched up 0.47% to $1,830.88 per ounce.
- The yield on the 10-year Treasury bond climbed 6.4 basis points to 4.78%.
- Bitcoin rose 2.1% to $27,940.73.