Slow job growth sparks stock rally

NEW YORK:

Global stock indexes rose sharply, the US dollar dropped to a six-week low and benchmark 10-year US Treasury yields fell to five-week lows on Friday after data showed US job growth slowed more than expected in October.

The job growth slowdown underscored views that the Federal Reserve may be done hiking interest rates.

Also, US two-year yields were the lowest since early September after the data, which showed US job growth slowed in part as strikes by the United Auto Workers union against Detroit’s “Big Three” carmakers depressed manufacturing payrolls.

The data also showed the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labour market conditions.

“The good news here is that the slowdown will likely keep the Fed on the sidelines going forward,” said Brad McMillan, chief investment officer for Commonwealth Financial Network in Waltham, Massachusetts.

Published in The Express Tribune, November 5^th, 2023.

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