S&P 500 jumps as slowest private job gains in 32-months halts surge in U.S. yields
Investing.com — The S&P 500 rose Wednesday as the rise in Treasury yields was halted by data showing the pace of private job growth slowed to a 32-month low, easing fears somewhat that the Federal Reserve may need to hike again before year-end.
The S&P 500 rose 0.7%, the Dow Jones Industrial Average rose 0.3%, 104 points, Nasdaq surged 1.3%.
private payrolls grew by 89,000 in September, a sharp decline from the 180,000 in August, according to a report released Wednesday by ADP and Moody's (NYSE:MCO) Analytics. That was well short of economists’ forecast of 153,000 and the pace of slowest growth since January 2021.
The slowing job gains seen last month pointing to the easing tightness in the labor market contrasted with data released Tuesday showing an unexpected labor strength in demand.
The fewer private job gains last month has also coincided with a “steady decline in wages in the past 12 months,” Nela Richardson, chief economist at ADP, said.
Treasury yields took a breather from their recent melt up following the data amid easing bets that the Fed will be forced to hike rates in November.
About 22% of traders expect the Fed to raise rates in November, down from nearly 30% a day earlier, according to the Investing.com's Fed Rate Monitor Tool.
Growth sectors of the market including tech were back in demand underpinned by easing Treasury yields, with Alphabet Inc Class A (NASDAQ:GOOGL) and Microsoft Corporation (NASDAQ:MSFT) leading to the upside.
Intel (NASDAQ:INTC) rose after detailing plans late Tuesday to separate its programmable chip business into a standalone entity starting Jan. 1, paving for initial public offering in two to three years
The move suggests that Intel “isn't done restructuring its assets through
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