Jobs Data Surprises, Dow, S&P, and Nasdaq Rise in Unison
US stocks rallied on Wednesday (February 11th) after the delayed January jobs report came in better than expected, helping to ease concerns that the US economy was losing momentum. This data gave the market a reason to return to risk, although investors remained wary of the direction of interest rates after a series of back-and-forth macro releases.
At the opening of trading, the Dow Jones Industrial Average rose about 207 points (+0.4%). The S&P 500 gained 0.6%, while the Nasdaq Composite led the gains with a 0.8% surge, driven by gains in growth-oriented stocks.
The Bureau of Labor Statistics' Nonfarm Payrolls (NFP) report showed the US economy added 130,000 jobs in January—well above the consensus of around 55,000. The December figure was also revised down to 48,000, making the January release appear to be a fairly clear rebound. Meanwhile, the unemployment rate fell to 4.3%, slightly better than the market forecast of 4.4%.
This release came a day after retail sales data showed stagnant consumer spending in December, which had previously sparked concerns that the consumption engine—a key driver of the US economy—was starting to weaken. With the more solid NFP, some of the negative sentiment pressure eased, at least temporarily.
Cyclical and industrial stocks sensitive to growth prospects also rose. Caterpillar, GE Vernova, and Eaton all posted gains, as the market assessed that economic activity remained quite resilient. Meanwhile, US government bond yields also rose after the jobs data, reflecting adjustments in market expectations regarding the future path of interest rate policy.
Source: Newsmaker.id
