US equity indexes showed positive movement following a robust jobs report that significantly increased government bond yields. This upward shift in the equity markets helped mitigate some of the negative influences stemming from ongoing tensions in the Middle East, which have been impacting risk sentiment.
The Nasdaq Composite experienced a rise of 0.6%, reaching 18,030.8. Meanwhile, the S&P 500 saw an increase of 0.3%, climbing to 5,718.2, and the Dow Jones Industrial Average rose by 0.2% to 42,110.3 by midday Friday. Within the sectors, real estate recorded the sharpest decline, while financial stocks led the gains during intraday trading.
In terms of economic performance, the Bureau of Labor Statistics reported that nonfarm payrolls increased by 254,000 for September. This figure surpassed the consensus expectation of 150,000, which was compiled through a Bloomberg survey. Additionally, revisions for previous months revealed an upward adjustment of 17,000 jobs for August and a notable increase of 55,000 for July.
The unemployment rate improved, decreasing from 4.2% in August to 4.1% in September, aligning with market forecasts. Average hourly earnings also demonstrated growth of 0.4% on a sequential basis, surpassing the anticipated 0.3% growth estimate. The annual growth in earnings reached 4%, exceeding the expected 3.8%.
Meanwhile, US Treasury yields experienced an upward trajectory intraday, with the 10-year yield escalating by 10.6 basis points to 3.96%. The two-year rate rose by 17.7 basis points, settling at 3.89%. In the realm of company news, Stifel made adjustments to its price target for Norwegian Cruise Line Holdings, raising it to $29 from a previous target of $27 while sustaining a buy rating on the stock.
Shares of the cruise operator saw an intraday rise of 3.9%, marking it as one of the standout performers on the S&P 500. On the other hand, Guggenheim elevated Home Depot’s price objective to $450, an increase from $390, while maintaining a buy rating. However, shares of the home improvement giant fell by 1.5% during the intraday session, placing it among the most significant decliners on the Dow.
In commodity news, West Texas Intermediate crude oil climbed by 1.1%, reaching $74.48 per barrel, reflecting broader trends in the energy market..