Wall Street clings to weekly gains despite disappointing jobs report

October 11, 2021 - 2 weeks ago
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Wall Street’s major U.S. indexes were unchanged on Friday despite a dismal US jobs report.

At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average slipped -8.69 points, or down -0.03%, to 34,746.25.

The broad-based Standard & Poor’s 500 Index edged lower -8.42 points, or -0.19%, to 4,391.34, while the rich-tech Nasdaq Composite Index fell -74.48 points, or -0.51%, to 14,579.54.

All three indexes held on to weekly gains.

The S&P 500 and Dow advanced 0.8% and 1.2%, respectively, this week.

It was the S&P 500’s best week since August. The Nasdaq added 0.1% for the week.

The yield on the 10-year Treasury note jumped above 1.6% in trading Friday, continuing a recent rise that has triggered turbulence across markets.

Employment in the United States grew at a slower rate than expected in September, after the release of the Non-Farm Payrolls number missed the forecast of an increase of 490,000 and instead created just 194,000 jobs in September, the Bureau of Labor Statistics (BLS) said.

However, on the positive side, the unemployment rate fell to a much lower point than economists forecast.

At 4.8%, that’s the same level seen in late 2016; August’s jobs report was revised up to 366,000 compared to the initial read of 235,000.

A bleaker Labor picture could stall the U.S. Federal Reserve as it prepares to slow its $120 billion-per-month bond-buying program.

Wall Street is also preparing for third-quarter earnings season, which kicks off next week.

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