US stocks rise as softer jobs data pulls Treasury yields lower
- US stocks climbed Wednesday as yields eased following a steep sell-off on Tuesday.
- Private payrolls grew by 89,000 in September, below the 160,000 estimate, ADP reported.
US stocks moved higher on Wednesday as signs of a softer labor market sent US bond yields lower.
That marked a reversal from a Tuesday session that saw the Dow erase all its 2023 gains and the 10-year yield breach its highest mark since 2007.
Before trading opened in New York, ADP reported private payrolls grew by 89,000 in September, below the 160,000 estimate and roughly half of the prior month's 180,000.
The latest data raised hopes the Federal Reserve will turn to looser policy sooner. Still, Karin Kimbrough, LinkedIn's chief economist, isn't confident the US will avoid a recession.
"If you look at any macro data leading up to prior recessions, it's always good until it isn't," she told Insider in a recent interview. "Labor markets are often the last shoe to drop in how the economy turns."
On Thursday, the Labor Department will report weekly jobless claims report, and on Friday it will issue its monthly jobs data.
Meanwhile in Washington, the House voted to oust Kevin McCarthy from the speakership Tuesday, fueling more uncertainty on the political front that could rattle markets.
Here's where US indexes stood as the market opened at 9:30 a.m. on Wednesday:
- S&P 500: 4,240.72, up 0.27%
- Dow Jones Industrial Average: 33,060.35, up 0.18% (57.97 points)
- Nasdaq Composite: 13,124.29, up 0.50%
Here's what else is going on:
- Wall Street's fear gauge spiked to a four-month high.
- Billionaire Jeff Gundlach warned of a recession amid the market turmoil.
- An analyst said auto companies could sacrifice stock buybacks to help pay for union demands.
- A top economist explained why a US recession is still on the table.
In commodities, bonds, and crypto:
- Oil prices dropped, with West Texas Intermediate down 1.69% to $87.70 a barrel. Brent crude, the international benchmark, moved lower 1.72% to $89.93 a barrel.
- Gold edged higher 0.09% to $1,843.10 per ounce.
- The 10-year yield slipped 5 basis points to hover at 4.748%.
- Bitcoin climbed 0.81% to $27,536.