Stocks rise as investors try to adjust for rising Treasury yields: Live updates

Stocks were little changed on Friday as Treasury yields rose following the release of government jobs data – United better than expected.

The Dow Jones Industrial Average rose 140 points, or 0.4%. The S&P 500 also rose 0.3% and the Nasdaq Composite rose 0.4%. At the session’s low, the Dow fell by up to 270 points.

United StatesThe Labor Department said the South’s economy added 336,000 jobs in September. The economists polled by Dow Jones had anticipated 170,000 job additions. Indeed, wages rose less than expected last month.

The yield on the benchmark 10-year Treasury note rose more than 10 basis points, reaching near the 16-year peak set earlier this week, according to the data. The yield on the 10-year Treasury note recently rose to 4.82%.

Friday’s jobs report raised concerns among investors that the Federal Reserve will need to keep interest rates higher for an extended period to keep inflation under control.

Chris Zaccarelli, who serves as the chief investment officer at Independent Advisor Alliance, pointed out that in this scenario, positive labor market news is seen as unfavorable news for the overall market. “The bond market will be worried about the Fed raising interest rates further….And the stock market will worry about rising interest rates and their impact on consumers and corporate profits.

The utility sector, sensitive to high interest rates, fell 1.4% on Friday. AES lost 5%, while Dominion Energy and Sempra lost 2.5%. Consumer staples also fell 2.1%, and church and government consumer staples also fell 2.1%. Dwight, McCormick, and Kellanova fell 3% or more.

All major averages are facing a losing week. The S&P 500 index fell 1.4% for the week. This is the fifth consecutive week of losses for the market index, which would mark the longest weekly decline since May 2022. The Dow fell by 1.7%, while the Nasdaq lost 0.9% for the week.

bond-focused ETFs hit new lows not seen since 2020 and 2009.

ETFs tied to municipal bonds and inflation-protected bonds hit new multi-year lows on Friday in response to strong “jobs” reports.

The iShares National Muni Bond ETF (MUB) hit its lowest level since March 2020. Meanwhile, the iShares TIPS Bond ETF (TIP) and the SPDR Portfolio TIPS ETF (SPIP) fell to the lowest levels not seen since 2009.

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