50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Wall Street rebounds on megacaps boost, Treasury yields retreat

Published 06/10/2023, 09:16 pm
Updated 07/10/2023, 03:52 am
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023.  REUTERS/Brendan McDermid/File Photo
US500
-
C
-
JPM
-
XOM
-
WFC
-
1YMH25
-
BLK
-
PXD
-
TSLA
-
IXIC
-

By Ankika Biswas and Shashwat Chauhan

(Reuters) -Wall Street's main indexes reversed course and rose on Friday following a boost from megacap stocks, with investors assessing a fresh jobs report that also pointed to slowing wage growth.

The 10-year Treasury yield came off its fresh 16-year high hit after the data. Major growth stocks Microsoft (NASDAQ:MSFT), Meta Platforms, Alphabet (NASDAQ:GOOGL) and Nvidia rose about 2%.

The S&P 500 is now set for its first weekly gain in five, while the Dow is still on track to decline for the third straight week.

Earlier in the day, data showed U.S. employment increased by the most in eight months in September as hiring rose broadly, pointing to persistent labor market strength, though wage growth is slowing.

"A steady slowing of wage growth momentum should also be a solace for Fed officials given that even with still above-trend job growth, wages are not seeing upward pressure," strategists at TD Securities said.

Financial markets and most economists believe the Fed is probably done hiking interest rates because of a recent surge in long-term U.S. Treasury yields.

Traders put the chance of interest rates remaining unchanged in November and December at around 73% and 58%, respectively, according to CME's FedWatch tool.

Information technology shares were the top gainer among the major S&P 500 sectors, while consumer staples stocks were the worst hit.

For the week, energy stocks are set to be the worst hit among major S&P 500 sectors, while communications services and information technology are on track to be the top performers.

Looking ahead, data would take center stage once again with September consumer price inflation and producer price index readings due next week.

"It's really going to depend now on next week's data because the Fed would be happy if inflation comes in modest and we still have the job growth," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest Wealth Management.

Focus will also be on the upcoming quarterly earnings season, with major banks including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C) and asset manager BlackRock (NYSE:BLK) reporting next week.

At 12:11 p.m. ET, the Dow Jones Industrial Average was up 288.08 points, or 0.87%, at 33,407.65, the S&P 500 was up 40.33 points, or 0.95%, at 4,298.52, and the Nasdaq Composite was up 161.95 points, or 1.23%, at 13,381.78.

EV maker Tesla (NASDAQ:TSLA) fell 1% after cutting prices of its Model 3 and Model Y vehicles in the United States.

Exxon Mobil (NYSE:XOM) lost 1.7% after sources told Reuters that the U.S. oil producer was in advanced talks to acquire Pioneer Natural Resources (NYSE:PXD). Pioneer's stock jumped 10.8%.

Eli Lilly (NYSE:LLY) rose 3.1% after BofA Global Research hiked its price target on the drugmaker's stock to $700.

© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., August 15, 2023.  REUTERS/Brendan McDermid/File Photo

Advancing issues outnumbered decliners for a 2.23-to-1 ratio on the NYSE and a 1.95-to-1 ratio on the Nasdaq.

The S&P index recorded four new 52-week highs and 51 new lows, while the Nasdaq recorded 18 new highs and 226 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.