Noor Trends News, Technical Analysis, Educational Tools and Recommendations
US stocks have shown relatively steady performance as investors await the September jobs report. Wall Street stocks recovered ground on Thursday, finishing just below the flatline after breaking a three-day losing streak on Wednesday.
The S&P 500 and the tech-heavy Nasdaq Composite were down a modest 0.1%. A pullback in bond yields’ rally has brought some relief to battered stocks, and the 10-year Treasury yield was slightly lower after losing hold of 16-year highs the previous session.
US weekly jobless claims ticked higher last week but undershot economists’ expectations. They held near-historic lows, a sign of resilience in the labour market in the face of Fed rate hikes. This is another data point ahead of Friday’s eagerly awaited jobs report for September, after weaker-than-expected ADP private-sector hiring data provided another sign the labour market is cooling.
That could prompt the Fed to think twice about raising borrowing costs again, lifting some pressure on markets. However, some analysts believe the monthly report could be bad for stocks, whether the print is cool or hot, given the recent surge in bond yields. Oil prices continued to retreat on Thursday, amid concerns that a global economic slowdown will hit demand.
WTI crude oil futures fell to below $83, while Brent crude futures were down to just above $84 after breaking below the key level for the first time since late August. Stocks closed barely in the red on Thursday as investors await a crucial September jobs report slated for Friday morning.
Comments from Fed officials sent stocks off their lows during afternoon trade as San Francisco Fed President Mary Daly said high long-term bond yields could be a reason for the Fed to not hike interest rates further.
Some stocks leading gains in afternoon trading on Thursday include Rivian, Coca-Cola Company, Pepsico, Lucid, and Clorox Company. As stocks search for a catalyst beyond bond yields, some on Wall Street see the financial sector joining the 2023 rally as a key indicator.
