Markets in 5Monday, November 9
Chip rebound lifts stocks as yields rise on jobs data
Nasdaq and chip stocks recovered from Thursday's selloff Friday, while a stronger jobs report lifted the 10-year yield to 4.86%.
Stocks
Chip stocks lift Nasdaq as indexes rebound from Thursday
The Nasdaq Composite rose 1.09% to 24,579.42 on Friday, November 6, while the S&P 500 gained 0.31% to 7,376.86. The Dow Jones Industrial Average fell 0.46% to 51,285.73. Nvidia and seven other large chip stocks recovered more than a third of Thursday's losses, on average, but breadth stayed narrow, with 318 S&P 500 stocks declining and 184 advancing.
Rates
Ten-year Treasury yield rises to 4.86% on jobs data
The 10-year Treasury yield closed at 4.86% on November 6, up 2 basis points from 4.84% the day before, according to the official Treasury par yield data. The 2-year yield ended at 4.51%, leaving the 2s10s spread at 35 basis points. The 30-year yield was 5.26%, compared with 5.25% on November 5. Yields moved higher after the October jobs report came in stronger than expected.
Economy
October payrolls beat forecasts as unemployment fell to 4.1%
Payrolls rose 165,000 in October against a Reuters consensus of 65,000, and the unemployment rate fell to 4.1%. The stronger-than-expected report pushed Treasury yields higher on Friday, lifting the 2-year yield to 4.51% from 4.46%. The jobs figures came ahead of Monday's wholesale inventories release and Tuesday's October CPI report, both on this week's calendar.
Sectors
Chip index rebounds 4.2% after Thursday's 12.25% slide
The Philadelphia chip index rose 4.2% on Friday, a day after falling 12.25% to close at 9,011 on Thursday, according to Investrade. Technology led the sectors, up 1.45% on the session, while consumer staples fell 1.28% and financials slipped 0.59%. Communication services gained 0.43%, and utilities eased 0.39%.
The Fed
Fed held rates at 3.75%–4.00% in October by 10–2 vote
The Federal Reserve kept its target range at 3.75% to 4.00% on October 28, in a 10–2 vote, with two members preferring a rate hike. Market pricing put the odds of a December hike at 77%. Monday brings remarks from Governor Bowman at 8:40 a.m. ET, Chicago Fed President Goolsbee at 10:00 a.m. ET, and Richmond Fed President Barkin at 12:15 p.m. ET.