Stocks edge higher as jobs report dulls rate hike likelihood

|By:, SA News Editor

Stocks started the new month with slight gains in light trading ahead of the extended Labor Day weekend, as investors saw the disappointing August jobs report as reducing the likelihood that the Fed would further raise interest rates this year.

The Nasdaq barely eked out a gain but it was enough for the index to rack up its 46th all-time high so far this year, and the 2.7% weekly gain was its best weekly increase since December; meanwhile, the S&P 500 gained 1.3% for the week and the Dow added 0.8%.

The energy sector (+0.8%) topped today's leaderboard, followed by materials (+0.7%) and consumer discretionary, where automakers outperformed after reporting their U.S. sales for August.

U.S. Treasury yields moved solidly higher, with the 10-year yield rising 4 bps to 2.16% for a weekly loss of a basis point, while the two-year yield added 3 bps to 1.35%, settling the week up by a point; the U.S. Dollar Index added 0.2% to end the week higher by 0.1%.

U.S. crude oil rose 0.1% at $47.29/bbl.

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