The stock market rose on Friday, and bond yields rose after the US economy added much more than expected 467,000 jobs in January. Stock prices have risen after Friday’s job report. The Dow Jones Industrial Average fell 0.2% to about 100 points, while the S & P 500 rose 0.2% and the tech-heavy Nasdaq Composite index rose 1%.
The US economy added 467,000 jobs in January, according to new Ministry of Labor data. This is well above the expected 150,000, with approximately 200,000 additional jobs added in December 2021.
Employment data has shown investors that the Federal Reserve will continue to actively raise interest rates. This is expected to increase yields and signal the worst start of the stock market since 2009.
The report raised interest rates on the Treasury, with 10-year Treasuries surpassing 1.9%, the highest since January 2020, up from 1.5% earlier this year. Meanwhile, some tech stocks rose on Friday, pushing Nasdaq up slightly. E-commerce giant Amazon shares surged 12.0 years after sales reached nearly $ 140 billion in the previous quarter. Quarterly profit so far.
Legacy car maker Ford’s stake in electric vehicles plummeted 10-fold in the last quarter due to sluggish profits and earnings, blaming supply chain problems for failing to meet production targets. Strong employment reports are “good news” for the economy and American workers, but “unfortunately for the stock market” the Federal Reserve “forces interest rates to rise faster and higher.” It will add concern, says Chris Zaccarelli, chief investment officer of the Independent Advisors Alliance. Technology stocks have been struggling lately, with Nasdaq down 3.7% on Thursday alone.
The index was lowered by Facebook parent Meta’s disastrous quarterly report. This report shows a decrease in users and an increase in spending associated with the company’s Metaverse project. Facebook’s share price plummeted 26%, wiping out more than $ 230 billion in market value. This was the biggest one-day fall in the history of the stock market.
