Traders work on the floor of the New York Stock Exchange during morning trading on February 29, 2024 in New York City.
Michael M. Santiago | Getty Images
Stocks rebounded Friday morning after their worst session in a year as traders assessed the March jobs report.
of S&P500 Although it rose by 0.6%, Dow Jones Industrial Average It rose by 107 points (0.3%).High-tech oriented Nasdaq Composite It advanced by 0.8%.
Job growth in March totaled 303,000 people, better than expected, and the unemployment rate for the month was 3.8%, as expected. Nonfarm payrolls were expected to rise by 200,000, according to Dow Jones estimates. Wages rose 0.3% in the month and 4.1% from a year earlier, both in line with expectations.
Following this report, government bond yields soared and stock prices soared. Investors are torn between hoping for a strong economy that supports further corporate profit growth or a weak job market that would give the Federal Reserve the green light to start cutting interest rates.
”“This report highlights the strength of the job market within the broader context of a U.S. economy that continues to largely resist the effects of rising interest rates.” Joe Gaffoglio said.
Friday’s rebound followed a decline on Wall Street during Thursday trading.of Dow It fell about 530 points (1.35%), the biggest single-day decline since March 2023, and the fourth consecutive decline. While interest rates are on the rise, stock prices have remained stagnant.
of S&P500 and Nasdaq Composite They fell by 1.23% and 1.4%, respectively. The three major stock averages slipped into the red in the afternoon as oil prices soared and Minneapolis Fed President Neel Kashkari questioned whether interest rates should be cut as inflation remains high.
The Dow Jones Industrial Average led the decline of the three major indexes this week, falling 3% and on pace for its worst weekly performance since March 2023. The S&P 500 and Nasdaq were each down about 2% by Thursday’s close. These moves mark a setback after a strong first quarter ended last week, leaving some market participants questioning whether a correction is warranted following the strong gains. .
“Equities are likely to see some correction in the short term after strong returns in the first quarter,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “A modest decline would be within the normal ebb and flow of a market that is trending upward.”
