The US employment market slows, and stocks rise as the dollar and rates fall

 The US employment market slows, and stocks rise as the dollar and rates fall

The S&P 500 gained 40.56 points, or 0.94%, to 4,358.34, the Nasdaq Composite climbed 184.09 points, or 1.38%, to 13,478.28, and the Dow Jones Industrial Average increased by 222.24 points, or 0.66%, to 34,061.32.

The yield on the benchmark 10-year dropped to 4.484%, the lowest level since September 26. The yield on a two-year note hit 4.807%, the lowest level since September 1.

The U.S. dollar plunged to a six-week low, global stock indexes surged strongly, and benchmark 10-year U.S. Treasury rates sank to five-week lows on Friday after data that revealed the country's employment creation slowed more than anticipated in October.

The slowing in employment growth supported opinions that the Federal Reserve could have finished raising interest rates.

Additionally, after the data that indicated U.S. employment growth slowed partly due to strikes by the United Auto Workers union against Detroit's "Big Three" automakers, U.S. two-year yields were at their lowest level since early September.

Additionally, the statistics indicated that the yearly pay growth was the lowest in almost two and a half years, suggesting a loosening of labor market conditions.

The slowdown "will likely keep the Fed on the sidelines going forward," according to Commonwealth Financial Network's chief investment officer, Brad McMillan, of Waltham, Massachusetts.

An overheated economy has been one of their main worries, particularly in light of the GDP increase from the previous quarter, which signals that the issue is abating."

Some investors speculated that the Fed could be done rising rates after the US central bank decided to keep rates steady on Wednesday following Fed Chair Jerome Powell's remarks. On Thursday, the Bank of England also did not alter rates.

Officials from the central bank emphasized that more actions could be necessary to combat inflation.

According to the CME Group's FedWatch Tool, traders are now pricing in just a 5% likelihood of a December rate rise, down from 20% on Thursday, while the chances of a January increase have dropped to 11% from 28%.

Typical The 10-year yield dropped to 4.484%, the lowest level since September 26. The yield on a two-year note hit 4.807%, the lowest level since September 1.

The U.S. Treasury's decision to issue less long-term debt than anticipated on Wednesday and data on Thursday indicating the U.S. economy may finally be slowing contributed to the bond market's advance.

The S&P 500 gained 40.56 points, or 0.94%, to 4,358.34, the Nasdaq Composite climbed 184.09 points, or 1.38%, to 13,478.28, and the Dow Jones Industrial Average increased by 222.24 points, or 0.66%, to 34,061.32.

Apple's shares dropped 0.5% the day after the firm released its quarterly results and issued a warning about a lackluster Christmas period, defying the general market trend.

All three of the main U.S. stock indices had weekly increases; the S&P 500 saw its largest weekly percentage increase since November 2022.

The global MSCI stock index increased 1.18%, while the pan-European STOXX 600 index increased by 0.17%. For the week, the MSCI index increased by 5.3%, marking the largest weekly percentage gain since November 2022.

Following the employment statistics, the U.S. dollar index fell to a six-week low. During afternoon trade, the euro rose 1.07% to $1.0734, while the dollar index declined 1.111%.

At 149.31 per dollar, the Japanese yen gained 0.72% against the US dollar, while the pound was up 1.46% on the day at $1.2379.

With the geopolitical risk premium decreasing, oil prices in the commodities market finished more than 2% lower.

U.S. oil futures ended the day at $80.51, while Brent crude futures closed at $84.89 a barrel.

An ounce of spot gold increased by 0.4% to $1,994.31.