U.S. stocks rise on Friday as weak jobs data fuels rate-cut hopes
Wall Street opened higher on Friday, with the Dow up 0.7%, the S&P 500 up 0.9% and the Nasdaq up 1.3% after softer payroll numbers lowered Treasury yields.
Friday’s trading saw the Nasdaq Composite break its previous record after a Labor Department report revealed non-farm payrolls grew by just 29,000 jobs, a sharp miss of the 90,000 forecast. The disappointing employment data lowered the market’s estimate of a Federal Reserve rate hike this month, with the odds of a 25-basis-point increase dropping to about 20 percent. Treasury yields fell for a second consecutive day, reinforcing the risk-on sentiment.
Semiconductor stocks surged, highlighted by Nvidia’s 2.5 percent rise and a 3.1 percent gain in the Philadelphia chip index. Other heavyweights such as SpaceX, Tesla and Oracle also posted double-digit percentage gains, while Nike fell after warning of a revenue decline in China. The broader market rallied, with the Dow and S&P 500 both posting gains, and the Cboe Volatility Index slipping to a one-week low.
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