👀 Ones to watch: Undervalued stocks to buy before they report Q3 earningsSee Undervalued Stocks

Stock Market Today: S&P 500 ends higher as weaker jobs data boost rate cut hopes

Published 05/02/2024, 07:52 PM
Updated 05/03/2024, 04:28 PM
© Reuters
US500
-
DJI
-
AAPL
-
AMGN
-
LCO
-
CL
-
NQZ24
-
IXIC
-
SQ
-
NET
-

Investing.com-- The S&P 500 surged Friday as Apple led a surge in tech just as data showed jobs gains fell short of expectations in April, lifting hopes that the Federal Reserve could begin cutting interest rates sooner rather than later. 

At 16:00 ET (20:00 GMT), Dow Jones Industrial Average rose 450 points, or 1.2%, S&P 500 rose 1.3%, and NASDAQ Composite climbed 2%. 

Treasury yields slide after nonfarm payrolls shows slowing jobs growth

Treasury yields slipped on renewed hopes for rate cuts this year, after the data showed the U.S. economy added jobs at a slower rate in April, with only 175,000 jobs added last month, compared with a revised 315,000 in March.

The yield on the 10-year Treasury fell 6 basis points to 4.511%.

The unemployment rate also rose to 3.9% in April, climbing from 3.8% the prior month, but still the 27th consecutive month that the jobless rate has been below 4%. Crucially average hourly earnings growth slowed to 0.2% on the month.  

"The data shows a labor market coming into better balance and we continue to expect three cuts this year," Morgan Stanley said in a Friday note. 

Apple leads tech higher on earnings, buyback 

Apple (NASDAQ:AAPL) jumped 6%, leading the broader tech sector higher after Q2 results topped estimates and the iPhone maker unveiled a $110B stock buyback program as well as dividend hike.    

iPhone sales fell just shy of analyst expectations, but the results were better than feared, particularly in China, in which slowing growth has been a key worry for investors.  

Apple is expected to see the return of “renaissance of growth” as iPhone demand in China as well as services revenue are slowly starting to show signs of a turnaround, Wedbush Securities said in a Friday report. The tech giant’s move into AI, Wedbush adds, could drive the next supercycle. 

Block slips despite Q1 beat; Amgen confident over weight-loss drug

Block (NYSE:SQ) fell more than 1% even as the payments firm posted first-quarter earnings that topped estimates, driven by boost in Bitcoin.

Amgen (NASDAQ:AMGN) stock surged nearly 12% after the biotechnology firm expressed confidence after completing an interim analysis of its mid-stage study of experimental weight-loss drug MariTide.

Cybersecurity firm Cloudflare (NYSE:NET) slid 16% after weak guidance overshadowed strong quarterly earnings.

Crypto stocks mostly higher on Bitcoin rally, but Coinbase falters 

 
With the exception of Coinbase, crypto-related stocks including MicroStrategy Incorporated (NASDAQ:MSTR), Marathon Digital Holdings Inc (NASDAQ:MARA) were in the ascendency as bitcoin clawed back some recent losses, rising more than 4%. 
 
Coinbase Global Inc (NASDAQ:COIN) fell more than 2% but some Wall Street continue to back the stock following the crypto exchange's better-than-expected quarterly results. 
 

Pointing to various catalysts including further adoption, stablecoin bill, Base, derivative, international expansion  that can support the stock, Oppenheimer lifted its price target on the stock to $282 from $276.

 
(Peter Nurse, Ambar Warrick contributed to this item.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.