US: Equities close higher as softer jobs data quiets rate-hike expectations
US stocks rose on Friday after weaker-than-expected jobs data reduced expectations for a Fed rate hike. The Dow, S&P 500, and Nasdaq all gained. Tesla and Nvidia led advances, while Nike and data storage providers fell.
How this was made
The 30-second read
Why it matters
The surprise jobs print lowered the CME FedWatch probability of a 25‑bp hike to 22.7%, prompting a rally in rate‑sensitive equities and a sell‑off in some tech stocks.
Market read
The weaker jobs data shifts expectations for Fed policy, influencing equity, bond, and currency markets globally.
What to watch
China demand weakness highlighted by Nike could weigh on other consumer names despite the macro‑positive backdrop.
Background
The article reports the latest U.S. non‑farm payrolls, which came in at 29,000, well below expectations, reducing near‑term rate‑hike probability.
Ticker impact
Nvidia rose 1.3% as rate‑sensitive stocks gained on softer jobs data.
likely modest upward pressure from rate‑sensitivity.
The jobs report reduced near‑term Fed tightening expectations, which typically benefits high‑growth tech names like Nvidia.
Tesla gained 4.7% after the jobs data eased rate‑hike concerns.
likely continued buying pressure as investors anticipate lower financing costs.
Tesla is highly rate‑sensitive; a softer jobs report lowers the probability of a near‑term rate hike.
Nike fell 3.6% on the Dow after forecasting a steep revenue drop in China and announcing job cuts.
likely further downside as revenue guidance disappoints.
Nike's own earnings guidance and restructuring news outweigh macro‑positive backdrop.
Western Digital tumbled about 10% as the worst performer in the S&P 500 tech index.
likely continued pressure amid sector‑wide weakness.
The sharp decline indicates investors are rotating out of data‑storage stocks after the macro surprise.
Seagate Technology fell roughly 10% as the worst performer in the S&P 500 tech index.
likely further downside unless sector sentiment improves.
Seagate shares mirrored Western Digital's drop, reflecting sector‑wide risk off.
Market effects
Rate‑sensitive sectors such as technology, consumer discretionary and real estate gained, while data‑storage stocks lagged.
U.S. equities rose broadly; the softer jobs data may ease expectations for Fed tightening in the near term.
Global markets may see similar risk‑off in rate‑sensitive assets as investors reassess Fed policy trajectory.
Counterpoint
If the Fed still hikes later in the year, the rally could be short‑lived and tech valuations may be over‑extended.
Key entities
- government_agencyU.S. Labor Department
Released the non‑farm payroll numbers.
- market_indicatorCME FedWatch
Tracks market expectations for Fed rate moves.
