In the wake of the latest U.S. non-farm payrolls data, stock markets have displayed a mixed response while Treasury yields have fluctuated. The U.S. non-farm payrolls increased by only 12,000 jobs in October 2024, a significant drop from a revised 223,000 in September. This muted job growth was attributed to various factors, including strikes and hurricanes, which left over half a million workers unable to work, marking the highest such figure since the 1970s. The unemployment rate remained steady at 4.1% [c61a641e].
Despite the disappointing job numbers, major stock indices gained ground, particularly in the tech sector, buoyed by strong earnings reports from companies like Amazon and Intel. Nasdaq futures rose by 0.6% and S&P 500 futures increased by 0.5%, reflecting a generally optimistic sentiment among investors [c61a641e].
Treasury yields, however, experienced a rise, with the 10-year yield closing near 4.4%, the highest level since July, while the two-year yield also saw an uptick. This increase in yields coincided with a strengthening of the dollar, driven by pre-election hedging as investors braced for the upcoming presidential election [c61a641e].
Analysts, including Brian Jacobsen, chief economist at Annex Wealth Management, noted that the opaque employment situation may complicate economic forecasts, suggesting that the labor market's current state could have broader implications for monetary policy [1d69ccac].
As the U.S. approaches the presidential election, polls indicate a close race, which may further influence market dynamics in the coming weeks. Investors are keeping a close eye on economic indicators and political developments as they navigate the current landscape [1d69ccac].