Stocks tumbled and Treasury yields leaped before markets staged a comeback as investors found nuance in a red-hot US employment report.
The S&P 500 was up 1.2 per cent in afternoon trading after erasing an earlier drop of 0.9 per cent. The Dow Jones Industrial Average was up 308 points, or 0.9 per cent, as of 1:43 pm Eastern time, and the Nasdaq flipped to a gain of 1.5 per cent.
But Treasury yields pared their gains as the morning progressed, particularly shorter-term ones, as economists pointed to some more encouraging data within the jobs report. “Like most reports, Fed will find things to like and dislike here,” according to Andrew Patterson, senior economist at Vanguard. ”These numbers are still suggestive of a soft landing path, at least in the next three to six months, and then it gets worse after that. Markets were very oversold coming into the jobs numbers. There was a lot of ‘crash’ talk, which usually means sentiment is quite bearish. These numbers may mean a little bit higher rates, but rates have already gone up so much, that is kind of baked into equities.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inflation, high interest rates to crunch Christmas spendingSpending data is painting a picture of a less than jolly festive season for the nation’s retailers.
Read more »
Interest rates: Federal Reserve hike on the cards as US economy adds 336,000 jobs in SeptemberInvestors are banking on the jobs report as an indicator of whether the US Federal Reserve will squeeze in one more rate rise before the end of the year.
Read more »
Surging US bond yields and market panic | Will the RBA raise interest rates?In this week’s episode, James and Anthony look at why surging bond yields have markets in a panic and what it means for the Reserve Bank and the local economy.
Read more »
A four-step coping plan now interest rates might stay highMurmurs are getting louder that rates may not be on the way down any time soon, so here’s how to prepare for the worst.
Read more »
Inflation, high interest rates to crunch Christmas spendingSpending data is painting a picture of a less than jolly festive season for the nation’s retailers.
Read more »
Oil price dip brings ‘relief’ and impacts interest ratesCommSec’s Tom Piotrowski says there has been a “big retreat” in the price of oil.\n\nOil prices fell, with the global benchmark Brent crude down nearly two per cent to $US84.17 per barrel.\n\nMeanwhile, the US WTI shed more than two per cent to $US82.48 per barrel.\n\n'This comes as a bit of a relief as well because that has underlined the move higher for interest rates,” he told Sky News Australia.\n\n“So in the last couple of days, we’ve seen a $13 price range on the US benchmark; last night down by two per cent or a $1.86 - $2.41.\n\n“So that’s another factor that’s taken the heat out of the interest rate markets.”\n\nPresented by CommSec.\n
Read more »