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U.S. stocks ended higher on Friday as bond yields fell sharply after fresh data showed signs of slowing jobs growth and a spike in unemployment, raising hopes that the Federal Reserve may be done with hiking its interest rates. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.7% or 222.24 points to finish at 34,061.32 points.
The S&P 500 rose 0.9% or 40.56 points, to end at 4,358.34 points. Real estate, tech, communication services and consumer discretionary stocks were the best performers.
The Real Estate Select Sector SPDR (XLRE) rose 2.4%, while the Consumer Discretionary Select Sector SPDR (XLY) added 1.4%. Technology Select Sector SPDR (XLK) jumped 1%, while the Communication Services Select Sector SPDR (XLC) climbed 1.5%. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 1.4% or 184.09 points to close at 13,478.28 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.79% to 14.91. A total of 12.05 billion shares were traded on Friday, higher than the last 20-session average of 10.86 billion. Advancers outnumbered decliners on the NYSE by a 5.55-to-1 ratio. On the Nasdaq, a 3.56-to-1 ratio favored advancing issues.
Investors Get Back Lost Confidence
Investors’ confidence got a boost as economic data released on Friday hinted at a cooling jobs market. The Labor Department said that the U.S. economy added just 150,000 new jobs in October, with demand for labor weakening as higher interest rates continue to take its toll on the economy.
Economists had expected 170,000 new job additions last month. Also, the unemployment rate rose to 3.9% in October, higher than the consensus estimate of 3.8%.
The weaker-than-expected jobs report raised hopes among investors that the Federal Reserve may be done with its monetary tightening policy and would soon end the campaign. This sent stocks on a rally.
Also, Treasury yields fell sharply this week after nearing 5% year in the month. The 10-year Treasury yield fell to 4.557%, recording its sharpest weekly decline since March. The 2-year Treasury yield fell 13 basis points on Friday to finish at 4.8%. Tech stocks gained following the decline in bond yields.
In other economic data released on Friday, average hourly earnings rose 0.2% in October, missing the consensus of a rise of 0.3%.
Weekly Roundup
The sharp decline in Treasury yields also helped all three major indexes record solid weekly gains. The Dow gained 5.1% for the week, its biggest weekly percentage gain since October 2022. The S&P 500 ended the week 5.9% higher, while the Nasdaq finished 6.6%, each registering its strongest weekly gains since November 2022.
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Stock Market News for Nov 6, 2023
U.S. stocks ended higher on Friday as bond yields fell sharply after fresh data showed signs of slowing jobs growth and a spike in unemployment, raising hopes that the Federal Reserve may be done with hiking its interest rates. All three major indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.7% or 222.24 points to finish at 34,061.32 points.
The S&P 500 rose 0.9% or 40.56 points, to end at 4,358.34 points. Real estate, tech, communication services and consumer discretionary stocks were the best performers.
The Real Estate Select Sector SPDR (XLRE) rose 2.4%, while the Consumer Discretionary Select Sector SPDR (XLY) added 1.4%. Technology Select Sector SPDR (XLK) jumped 1%, while the Communication Services Select Sector SPDR (XLC) climbed 1.5%. Ten of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq jumped 1.4% or 184.09 points to close at 13,478.28 points.
The fear-gauge CBOE Volatility Index (VIX) was down 4.79% to 14.91. A total of 12.05 billion shares were traded on Friday, higher than the last 20-session average of 10.86 billion. Advancers outnumbered decliners on the NYSE by a 5.55-to-1 ratio. On the Nasdaq, a 3.56-to-1 ratio favored advancing issues.
Investors Get Back Lost Confidence
Investors’ confidence got a boost as economic data released on Friday hinted at a cooling jobs market. The Labor Department said that the U.S. economy added just 150,000 new jobs in October, with demand for labor weakening as higher interest rates continue to take its toll on the economy.
Economists had expected 170,000 new job additions last month. Also, the unemployment rate rose to 3.9% in October, higher than the consensus estimate of 3.8%.
The weaker-than-expected jobs report raised hopes among investors that the Federal Reserve may be done with its monetary tightening policy and would soon end the campaign. This sent stocks on a rally.
Also, Treasury yields fell sharply this week after nearing 5% year in the month. The 10-year Treasury yield fell to 4.557%, recording its sharpest weekly decline since March. The 2-year Treasury yield fell 13 basis points on Friday to finish at 4.8%. Tech stocks gained following the decline in bond yields.
Shares of Microsoft Corporation ((MSFT - Free Report) ) rose 1.3%, while Netflix, Inc. ((NFLX - Free Report) ) jumped 1.8%. Netflix has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
Economic Data
In other economic data released on Friday, average hourly earnings rose 0.2% in October, missing the consensus of a rise of 0.3%.
Weekly Roundup
The sharp decline in Treasury yields also helped all three major indexes record solid weekly gains. The Dow gained 5.1% for the week, its biggest weekly percentage gain since October 2022. The S&P 500 ended the week 5.9% higher, while the Nasdaq finished 6.6%, each registering its strongest weekly gains since November 2022.