U.S. Stocks Rebound and Treasury Yields Hold Steady After Hiring Accelerates In March

Barry Adams
05 Apr, 2024
New York City

Stocks on Wall Street advanced as investors reacted to the latest nonfarm payrolls report. 

The S&P 500 index and the Nasdaq Composite advanced more than 0.4% after the U.S. economy added more than expected jobs in March, indicating a resilient economy. 

The jobless rate edged slightly lower, but wages rose at a faster pace, making the Federal Reserve's task harder in balancing economic growth while moderating inflation. 

Investors are looking for the U.S. economy to grow at a faster pace because that supports corporate earnings growth, but at the same time, they prefer job market conditions to weaken so that wage inflation falls below 2%. 

So far, wages have been rising at an annual pace of around 4%, and the U.S. economy is expanding at an above-average long-term annual growth rate of 2%. 

The latest jobs report supports the case for the Federal Reserve to hold rates steady at the next meeting, as more investors anticipate the no landing scenario, where policymakers hold rates steady till the end of the year. 

 

Nonfarm Payrolls Rise the most in 10 Months 

The U.S. economy added more than expected: 303,000 jobs in March, more than 270,000 jobs in February, and at the fastest pace in ten months. 

The jobless rate eased to 3.8% in March from a two-year high of 3.9% in February. the U.S. Bureau of Labor Statistics noted in its monthly nonfarm payrolls report. 

The average hourly wage for all employees on private nonfarm payrolls rose 0.3%, or 12 cents, to $34.69. 

Over the last 12 months, average hourly earnings increased by 4.1% in March after rising by 4.3% in February. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.5% to 5,170.64, and the Nasdaq Composite rose 0.8% to 16,173.02. 

The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched down to 4.35%, and 30-year Treasury bonds edged up to 4.51%.

WTI crude oil increased $0.15 to $86.73 a barrel, and natural gas prices increased 1 cent to $1.77 a thermal unit.

Gold decreased by $17.89 to $2,308.28 an ounce, and silver fell 21 cents to $27.05. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.42.

 

U.S. Stock Movers

Teladoc Health declined 0.5% to $14.17 after the company said chief executive officer Jason Gorevic unexpectedly departed.

The company's board appointed chief financial officer Mala Murthy as temporary chief executive while the company conducted a search for a permanent replacement.