![]() ![]() The increase comes as production cuts by major producers continue to prop up the market. crude oil climbed 2.3%, extending its weekly gain to 7.3%. Exxon Mobil rose 2.1% and Chevron was up 2%. Rising oil prices helped push energy stocks higher. The yield on the 10-year Treasury, which influences interest rates on mortgages and other consumer loans, rose to 4.17% from 4.11%.īanks and financial services stocks accounted for a big share of the gains among S&P 500 companies. The yield on the 2-year Treasury, which tracks expectations for the Fed, got as high as 4.91% at one point, but fell to 4.88% by late afternoon. The Fed has maintained that it is ready to keep raising interest rates if it has to, but will base its next moves on the latest economic data.īond yields were mostly rose Friday. The goal has been to rein inflation back to the Fed’s target of 2%. The central bank has raised its main interest rate aggressively since 2022 to the highest level since 2001. “From a data-dependent Fed perspective, the economic data we have seen in August in conjunction with today’s jobs report certainly reinforces the idea that we have seen the last rate hike during this cycle,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. The recent economic snapshots have bolstered the view on Wall Street that the Fed may hold rates steady at its next policy meeting in September. economy remains remarkably resilient - led to the market’s pullback in August.īut this week, stocks mostly rallied following reports showing job openings fell to the lowest level since March 2021, consumer confidence tumbled in August and a measure of inflation closely tracked by the Fed remained low in July. Market jitters over the possibility that the Fed might have to keep interest rates higher for longer - following reports showing the U.S. But they also made the central bank's task of taming inflation more difficult by fueling wage and price increases. The strong job market, along with consumer spending, has so far helped thwart a recession that analysts expected at some point in 2023. “Today’s employment report will add to recent data which indicates the Fed can pause on raising interest rates,” said Steve Wyett, chief investment strategist of BOK Financial. Wall Street welcomed the latest monthly labor market snapshot, as it roots for the economy to show signs of lower inflation and cooling job growth so that the Fed will be able to ease up on its rate hike campaign. The report also showed that the unemployment rate rose from 3.5% to 3.8%, the highest level since February 2022, though still low by historical standards. From June through August, the economy added 449,000 jobs, the lowest three-month total in three years. The job growth marked an increase from July’s revised gain of 157,000, but still pointed to a moderating pace of hiring compared with earlier this year. The Labor Department reported Friday that employers added a solid 187,000 jobs in August. ![]()
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