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The stock market jumped Friday while bond yields rose after the US economy added a much better-than-expected 467,000 jobs in January, a sign for investors that the Federal Reserve will continue with plans to tighten monetary policy tighten and raise interest rates.
Bond yields are rising again as investors worry about imminent rate hikes.
Important facts
Stocks closed higher after Friday’s jobs report: the Dow Jones Industrial Average was broadly flat, while the S&P 500 was up 0.5% and the tech-heavy Nasdaq Composite was up 1.6%.
The US economy added 467,000 jobs in January — well above the 150,000 expected and the nearly 200,000 jobs added in December 2021, according to new Labor Department data.
The jobs data signaled investors that the Federal Reserve will continue to aggressively raise interest rates, a prospect that sent yields higher and ushered in the stock market’s worst start to a year since 2009.
The report sent Treasury rates higher, with the US 10-year Treasury bond jumping over 1.9%, its highest since December 2019 and a 1.5% gain earlier this year.
Tech stocks rallied on Friday, pushing the Nasdaq higher: Shares in e-commerce giant Amazon rose 15% after posting record sales of nearly $140 billion last quarter, while Snap rose over 60 % shot up after reporting its first-ever quarterly profit.
Shares in legacy automaker Ford, which is expanding into electric vehicles, plunged nearly 10% after lackluster earnings and sales in the most recent quarter, with the company blaming missed production targets on supply chain problems.