Stocks Rise as Jobs Boost Bets on December Fed Cut
Stocks rose and bond yields fell as traders boosted bets on a December Federal Reserve rate cut after the latest jobs report.
Equities added to this week’s advance, with the S&P 500 heading toward its 57th closing record this year. Treasuries climbed across the curve, with the move led by the policy-sensitive two-year bonds. Swap traders are pricing in about 21 basis points worth of easing at the Fed’s December meeting, from about 16 basis points before the data.
Nonfarm payrolls increased 227,000 last month following an upwardly revised 36,000 gain in October. Since the figures have been choppy lately, economists are keeping an eye on payrolls growth over the past three months, which averaged 173,000. The unemployment rate edged higher and wages rose by more than forecast.
The S&P 500 rose 0.2%. The Nasdaq 100 added 0.2%. The Dow Jones Industrial Average gained 0.3%.
Treasury 10-year yields declined four basis points to 4.13%. The Bloomberg Dollar Spot Index was little changed.
Source: Bloomberg
