S&P 500 rises slightly as Treasury yields fall from 16-year highs: Live updates: Live updates

The S&P 500 rose on Wednesday as Treasury yields fell from multi-year highs after employment data was released which were significantly weaker than expected.

The broader market index rose 0.3%. The Dow Jones Industrial Average rose 22 points, or 0.07%, while the Nasdaq Composite rose 0.7%.

The consumer goods sector performed best with growth of over 1%. Tesla and Carnival led the sector’s gains, rising 4% and 2.8%, respectively. Energy was the worst-performing sector in the S&P 500 on Wednesday. Philips 66 fell 5%, while APA, Marathon Petroleum, and Valero Energy fell more than 4% due to falling oil prices.

Wednesday’s moves follow the release of new employment data. ADP said it added 89,000 private sector jobs last month. This is well below the Dow Jones forecast of 160,000 and less than the 180,000 additional jobs that have been revised upwards since August.

Yields on U.S. Treasury bonds have fallen slightly from 2007 highs, data shows. The yield on the 10-year Treasury note was 4.773%.

Rising interest rates have increased fears of a recession and pushed mortgage rates closer to 8%. As a result, demand for mortgages fell to its lowest level since 1996.

“The market is driven by interest rates,” said Jamie Cox, managing partner of Harris Financial Group.“[We see] a divergence – a big difference – between fixed income and stocks,” Cox added.

Investors remain on edge, eagerly awaiting the release of September non-farm payroll data for further clues on the strength of the labor market.

The data follows a bearish session on Wall Street after job openings data showed the job market remained strong and bond yields rose. The Dow Jones recorded its worst session since March and turned negative this year.

The overall market index is now 8% below its July high, down nearly 10%, which is the official definition of a correction.”The market needs to ask the question: ‘How long can the economy stay healthy if interest rates rise?'” Bob Doll, chief investment officer at Crossmark Global Investments, said Wednesday on web-open-market-place “Squawk on the Street.” “Or perhaps we are in a period of economic weakness and the dreaded word ‘recession’ reappears in the dictionary, requiring us to make profit adjustments?

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