Stock Market Today: Dow snaps losing streak as Treasury yield storm calms
Investing.com — The Dow closed higher to snap a three-day losing streak on Wednesday as data showing the pace of private job growth slowed to a 32-month low eased fears somewhat that the Federal Reserve may not need to hike again before year-end, halting the recent rise in Treasury yields.
The Dow Jones Industrial Average rose 0.4%, 127 points, Nasdaq surged 1.4%, and the S&P 500 rose 0.8%,
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.
U.S. services activity, meanwhile, slowed slightly in September, adding to hopes that the Fed's higher for longer rates are starting to bite into growth in services sector, which remains a key driver of inflation.
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.
Apple Inc
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