Stocks ended higher for the first time in four weeks but surrendered most of their gains, as jobs data suggested the Federal Reserve might not be enough. Stocks bounced off nearly two-year lows on Monday and Tuesday, with the S&P 500 rising 5.6%, its best two-day move since 2020 and the third-best start to an October since 1930. Energy sharply outperformed the S&P 500 Index as oil prices surged following a OPEC+ group of oil exporters to cut a 2 million-barrel per day on Wednesday. Signs of labor market strength also seemed to deepen inflation fears. On Friday, the Labor Department reported that the economy had added 263,000 jobs in September, while the unemployment rate had fallen back to multiyear lows of 3.5%. A surprise drop in the participation rate, to 62.3%, indicating that competition for available workers would remain intense. U.S. Treasury yields increased Friday morning after the nonfarm payrolls data, reversing their decline earlier in the week on the decline in job openings and the Australian central bank’s decision to raise rates by 0.25% instead of 0.50%. Shares in Europe gained ground, following global peers, on hopes that central banks might start scaling back interest rate increases. In local currency terms, the pan-European STOXX Europe 600 Index ended the week 0.98% higher while ECB minutes show rising worries about inflation. China’s stock markets were shut for the National Day holiday from October 1 to October 7, otherwise known as Golden Week.
Stocks rebound but US jobs data spoiled the party
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