Linea Mercati Interview 10/4/23
October 5, 2023
Ten-year yields highest since 2007 on strong jobs report
October 6, 2023October 5, 20232:43 PM EDTUpdated 5 min ago
FILE PHOTO:Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing Rights
NEW YORK, Oct 5 (Reuters) – U.S. stocks bounced off session lows and were near unchanged in afternoon trading on Thursday, as investors awaited Friday’s monthly jobs report and further possible clues on the outlook for interest rates.
U.S. data on initial claims for state unemployment benefits pointed to still-resilient labor market conditions, a day after a report showing U.S. private payrolls increased less than expected in September.
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Friday’s monthly payrolls report was expected to be the week’s most important economic news, helping to determine whether the Federal Reserve will keep rates higher for longer.
Benchmark U.S. Treasury yields eased. Earlier this week, they hit their highest since 2007.
Strategists noted that the S&P 500 was holding above its 200-day moving average, currently at around 4,206.
“It looks like we’re trying to hold here, and the reason is probably because yields have come down somewhat and maybe these comments by Mary Daly may have also helped a little bit,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
San Francisco Federal Reserve Bank President Mary Daly said at the Economic Club of New York that with U.S. monetary policy “well into” restrictive territory and the recent rise in U.S. Treasury yields, the Fed may not need to raise rates any more.
The Dow Jones Industrial Average (.DJI) rose 0.17 points to 33,129.72, the S&P 500 (.SPX) lost 4.83 points, or 0.11%, to 4,258.92 and the Nasdaq Composite (.IXIC) dropped 16.68 points, or 0.13%, to 13,219.33.
