Wall Street mixed, benchmark Treasury yields up before US holiday weekend
By Stephen Culp
NEW YORK (Reuters) — U.S. stock indexes were mixed and benchmark Treasury yields rebounded after the much-anticipated U.S. August employment report showed an uptick in unemployment and cooler-than-expected wage growth, cementing expectations that the Federal Reserve will let key interest rates stand at its September policy meeting.
The three major indexes gave up earlier gains as the session progressed and investors digested the data ahead of the long U.S. holiday weekend. The Nasdaq was last modestly lower, the S&P 500 just below the flatline and the Dow was modestly green.
All three indexes were on course to notch gains on the week.
«Today, people are coasting into the holiday weekend with relief that the job numbers were solid,» said Ryan Detrick, chief market strategist at Carson Group in Omaha.
«There are signs of the economy slowing, which is what the Fed wants to see,» Detrick added. «It likely opens the door for no rate hike at the next Fed meeting in three weeks.»
The Labor Department's payrolls report showed the U.S. economy added more jobs than expected last month, but the rising unemployment and participation rates, along with a welcome cool-down in average hourly wage growth, solidified expectations that the Fed will let key interest rates stand this month.
Financial markets are pricing in a 93% likelihood of such a pause this month, according to CME's FedWatch tool.
But what the Fed will do beyond September remains an open question.
The Dow Jones Industrial Average rose 67.82 points, or 0.2%, to 34,789.73, the S&P 500 lost 1.15 points, or 0.03%, to 4,506.51 and the Nasdaq Composite dropped 42.86 points, or 0.31%, to 13,992.11.
European stocks steadied, ending the session unchanged as a
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