Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.7%, 1.18%, and 0.87%, respectively.
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The consumer staples sector (XLP) was the session’s laggard, as it lost 0.54%. Conversely, the technology sector (XLK) was the session’s leader, with a gain of 1.89%. Overall, a quick look at the S&P 500 heatmap shows a lot of green throughout the index.
Furthermore, the U.S. 10-Year Treasury yield increased to 4.8%, a jump of eight basis points. Similarly, the Two-Year Treasury yield also increased, as it hovers around 5.09%.
Last updated: 11:45AM EST
Stocks are in the green so far in today’s trading. BofA Securities’ Global Investment Strategy data reveals we’re experiencing the most significant U.S. Treasury bond bear market ever. The period from July 31, 2020, to October 31, 2022, witnessed a peak-to-trough performance decline of 24.7%. In stark contrast, the 30-year U.S. Treasury has plummeted by 50%. Historical setbacks include a dip of 18.7% from mid-1860 to mid-1861 and a 16.1% decline between 1835 and 1839.
Meanwhile, JPMorgan’s Chief Market Strategist, Marko Kolanovic, forecasted potential turbulence for Wall Street. He hinted at a potential 20% decline in the S&P 500, noting elevated interest rates and mounting consumer stresses, such as rising credit card and auto loan delinquencies. Although Kolanovic doesn’t anticipate an immediate stock market crash, he believes a recession is on the horizon, underlined by the upward trend of the S&P VIX Index.
Last updated: 9:30AM EST
Stocks opened lower on Friday morning after the September non-farm payrolls data. The Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by 0.45%, 0.46%, and 0.3%, respectively, at 9:30 a.m. EST, October 6.
The U.S. non-farm payrolls data indicated that 336,000 jobs were added in September, above economists’ forecasts of 160,000 and increasing from the upwardly revised number of the addition of 227,000 jobs in August. Meanwhile, the unemployment rate stayed unchanged at 3.8% versus estimates of 3.7%.
First published:5:00AM EST
U.S. Futures are shaky on Friday morning as traders keenly anticipate September’s Non-Farm Payrolls report due later today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.06%, 0.04%, and 0.06%, respectively, at 5:00 a.m. EST, October 6.
Experts predict that the U.S. would have added 170,000 jobs last month, lower than the 187,000 jobs added in August. Meanwhile, the unemployment rate is expected to have fallen to 3.7% in September from 3.8% registered in the prior month.
The higher-than-expected JOLTS jobs opening data and the softer ADP private payroll data have confounded investors’ expectations of the Fed’s future rate hike policy. A favorable Jobs report could put the Fed’s perspective back into its dovish stance. In the meantime, WTI crude oil futures are continuing their downward spiral, hovering near $82.43 as of the last check. On the contrary, rising bond yields continue to add pressure on stocks. The U.S. 10-year treasury yield was 4.73% at the time of writing.
Turning towards stocks, shares of denim maker Levi Strauss (LEVI) fell as much as 5% after reporting mixed Q3FY23 results and cutting Fiscal 2023 sales guidance. In a mega deal, oil and gas giant Exxon (XOM) may acquire Pioneer Natural Resources (PXD) for $60 billion, as reported by the Wall Street Journal. Per the report, a deal could be announced soon. At the same time, another oil giant, NextEra Energy stock (NEE), dropped to levels not seen in years after troubles at its NextEra Energy Partners arm. Even shares of legacy automaker General Motors (GM) fell in regular trading yesterday owing to a huge new airbag problem.
Elsewhere, European indices are inching higher as markets await the U.S. jobs data. A strong labor report could push the Fed to increase interest rates more than expected.
Asia-Pacific Markets End Mixed on Friday
Asia-Pacific indices ended mixed today as traders worldwide await the U.S. key jobs report. Chinese stock markets remained closed for trading today.
Hong Kong’s Hang Seng index ended higher by 1.58%.
At the same time, Japan’s Nikkei ended down by 0.26%, and the Topix index ended marginally up by 0.01%.
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