It helps set rates for mortgages and other important loans. The yield on the 10-year Treasury climbed to 3.69% from 3.60% late Thursday. Traders are increasingly expecting the Fed to follow up a June pause with a July hike to interest rates, according to data from CME Group. PacWest Bancorp leaped 14.1%, for example, to trim its loss for the year to 66.6%.īut Fed officials have also warned recently that a pause on rate hikes in June wouldn’t necessarily mean the end to hikes. Several under the heaviest scrutiny rallied following the jobs report. Several high-profile bank failures since March have shaken the market, leading Wall Street to hunt for other possible weak links. Higher rates have also hurt many smaller and mid-sized banks, in part because customers have pulled deposits in search of higher interest at money-market funds. If it does, that would be the first time it hasn’t hiked rates in more than a year.Ī pause on rate hikes would offer some breathing room for an economy that’s already seen manufacturing contract sharply for months. Exxon Mobil rose 2.3% as prices for crude oil climbed on hopes that a resilient economy would burn more fuel.įollowing the report, traders were largely expecting the Fed to hold interest rates steady at its next meeting in two weeks.
It’s the latest signal that the job market remains remarkably solid despite much higher interest rates, and it offers a hefty pillar of support for an economy that’s begun to slow.Īreas of the market that do best when the economy is healthy led a widespread rally, including stocks of industrial companies, energy producers and banks. The indexes got a boost after a report showed employers unexpectedly accelerated their hiring last month. The Dow Jones Industrial Average rallied 701 points, or 2.1%, while the Nasdaq composite gained 1.1%. That put Wall Street’s main measure of health on the edge of entering what’s called a “bull market” despite a long list of challenges. The S&P 500 leaped 1.5% for the latest surge in a rally that’s vaulted it nearly 20% since mid-October. job market suggested a recession may not be as close as Wall Street had feared. NEW YORK (AP) - Stocks rushed higher Friday after a strong report on the U.S.
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