Nasdaq Nears Record High Amid Weak U.S. Jobs Data
Written with artificial intelligence.
U.S. stock markets closed higher on Friday, October 2, with the Nasdaq approaching a record closing high, following a disappointing jobs report. The economy created only 29,000 jobs in September, significantly below expectations, prompting speculation about the Federal Reserve's interest rate decisions.
Stock Market Performance
On October 2, American stock markets experienced gains, with the Nasdaq index climbing 1.19% to close at 27,190.864 points, nearing its record closing high of 27,244.28 points. The Dow Jones rose by 0.49%, reaching 51,176.96 points, while the S&P 500 increased by 0.73% to 7,722.72 points. The technology sector, particularly boosted by Nvidia's 1.34% rise, contributed to this positive momentum.
Weak Jobs Report
The U.S. jobs report, known as the payroll, revealed that only 29,000 jobs were added in September, far below the anticipated 84,000. Additionally, job creation figures for July and August were revised downward by 60,000. The unemployment rate increased to 4.2% from 4.1%, exceeding expectations for stability, though it remains historically low.
Federal Reserve Outlook
The disappointing jobs data fueled speculation regarding the Federal Reserve's monetary policy, with initial expectations of an interest rate hold increasing. According to CME Group data, 77.3% of market predictions suggest that the Fed will leave rates unchanged, while 22.7% foresee an increase. Although Treasury yields showed some relief post-report, they reversed course later in the day.
Economic Insights
Citi economists noted that recent events indicate a growing inclination towards monetary easing. They believe that, despite high Treasury yields, the Fed may feel increasingly hesitant to further weaken the economy, especially as the labor market no longer exerts inflationary pressure.