Large Tech Leads Inventory Rally After U.S. Hiring Knowledge: Markets Wrap

(Bloomberg) — Megacap technology stocks led U.S. equities higher and the dollar fell after a pickup in hiring last month bolstered confidence in the economy, while a strong rise in hourly wages added to inflation worries.

The Nasdaq 100 climbed the most among the major indexes and 10-year U.S. Treasury yields fell below 1.6% after employers added 559,000 jobs last month, just below the average forecast. Investors are assessing what the report means for the strength of the economy and the Federal Reserve’s next steps with monetary policy.

Bitcoin fell for the first time in three days after a tweet from Elon Musk appeared to hint at a potential split between the Tesla Inc. CEO and the cryptocurrency. Crypto-exposed stocks including Coinbase Global Inc. also slumped. Information-technology stocks rose the most among the major S&P 500 industry groups, putting the broader index on track for a second weekly advance.

With stocks largely tranquil of late, traders are assessing Friday’s data for clues on the Federal Reserve’s next moves with regards to interest rates and asset purchases. Strong services figures on Thursday highlighted the rapid recovery in business activity, as the world’s largest economy rebounds from the pandemic.

“This is the second month in a row where the number has missed,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said after the jobs report. “This month the expectations were even lower, but we still missed. The short-term result is that the bond market will likely stay stable as there is less fear that the Fed will have their hand forced and the spillover effects should be a relatively stable stock market.”

Elsewhere, the Stoxx Europe 600 Index pared an earlier advance to trade modestly higher. Asia shares were mixed, as China’s markets weathered President Joe Biden’s order amending a ban on U.S. investment in Chinese companies. The order named 59 firms with ties to the country’s military or in the surveillance industry, including Huawei Technologies Co.

Crude oil edged up, with prices set for a second weekly advance. The Bloomberg Commodity Index traded near a six-year high.

For market commentary, follow the MLIV blog.

These are some of the main moves in markets:

Stocks

The S&P 500 rose 0.6% as of 10:33 a.m. New York timeThe Nasdaq 100 rose 1.4%The Dow Jones Industrial Average rose 0.4%The Stoxx Europe 600 rose 0.3%The MSCI World index rose 0.6%

Currencies

The Bloomberg Dollar Spot Index fell 0.5%The euro rose 0.4% to $1.2177The British pound rose 0.6% to $1.4190The Japanese yen rose 0.8% to 109.38 per dollar

Bonds

The yield on 10-year Treasuries declined five basis points to 1.57%Germany’s 10-year yield declined three basis points to -0.21%Britain’s 10-year yield declined five basis points to 0.79%

Commodities

West Texas Intermediate crude rose 0.7% to $69 a barrelGold futures rose 1.1% to $1,894 an ounce

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