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US stocks were choppy early Monday morning, alternating gains and losses hours before the opening bell.
| ticker | security | Last | To change | To change % |
|---|---|---|---|---|
| Me: DJI | DOW JONES AVERAGES | 34818.27 | +139.92 | +0.40% |
| SP500 | S&P500 | 4545.86 | +15.45 | +0.34% |
| I: COMP | NASDAQ COMPOSITE INDEX | 14261.499778 | +40.98 | +0.29% |
US stocks edged higher on Friday, helped by a solid jobs report that showed the country’s unemployment rate returning to pre-pandemic levels.
The Dow Jones Industrial Average rose 139.92 points, or 0.4%, to 34818.27, while the S&P 500 climbed 15.45 points, or 0.3%, to 4545.86 and the Nasdaq Composite was up 40.98 points, or Gained 0.3% to 14261.50.
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All three indices started the day higher, falling in midday trade as government bond yields rose, then rebounded to end the day in the green.
The shaky trading session came a day after the S&P 500 completed its biggest quarterly decline since early 2020, falling about 5% for the first three months of the year. The benchmark stock indicator ended the week up less than 0.1%.
US stocks were choppy early Monday morning, alternating gains and losses hours before the opening bell. (Courtney Crow/New York Stock Exchange via AP))
Analysts said a healthy U.S. jobs report on Friday had eased worries about the recovery from the pandemic, although it also boosted the likelihood of more rate hikes.
A strong job market and economy give the Federal Reserve more leeway to raise interest rates sharply to stem the price hikes that are sweeping the country. The Fed has already hiked its key federal funds rate once, the first such hike since 2018. After Friday’s jobs report, traders increased bets that the Fed will hike rates by twice the usual amount at its next meeting.
Some economists say markets could be distorted by extraordinary measures by the Federal Reserve and other central banks to keep interest rates low.
Some economists say markets could be distorted by extraordinary measures by the Federal Reserve and other central banks to keep interest rates low. (Courtney Crow/New York Stock Exchange via AP/Associated Press)
Early Monday, the 10-year yield was 2.42%, up from 2.38% on Friday.
Meanwhile, stocks in Asia were mostly higher on Monday as gains carried over from a bullish end of last week on Wall Street.
Tokyo, Hong Kong and Seoul advanced while Shanghai was closed for a holiday. Oil prices rose and US futures were little changed.
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Shares of Chinese companies traded in Hong Kong rose after regulators in Beijing revised rules on foreign regulators’ access to their scrutiny of companies whose shares are listed on overseas markets.
Chinese financial magazine Caixin reported that China has proposed revising rules restricting the sharing of financial data by offshore-traded companies to help resolve a long-running dispute with the US that could see more than 200 Chinese stocks sold by be dumped on the American stock exchanges. It would remove the requirement that on-site inspections of overseas-traded Chinese companies be conducted primarily by Chinese regulators, Caixin said.
“Signs of a potential compromise to keep Chinese stocks listed in the US could help allay some fears of a delisting, which is one of the factors weighing on Chinese stocks over the past year,” said Yeap’s Jun Rong IG in a comment.
In the bond market, the yield on the two-year government bond neared its highest level in more than three years, jumping to 2.45% from 2.28% late Thursday. (Courtney Crow/New York Stock Exchange via AP)
Hong Kong’s Hang Seng index rose 1.9% to 22,462.17 after Chief Executive Carrie Lam said she would not seek a second term as the territory’s top official.
Lam’s five-year tenure was marked by huge protests, a crackdown by security forces and an overwhelming COVID-19 surge. Her successor will be elected in May, and the city’s security chief during the 2019 protests is among the possible candidates
In Tokyo, the Nikkei 225 gained 0.3% to 27,736.47. Seoul’s kospi rose 0.6% to 2,755.99. Sydney’s S&P/ASX 200 was up 0.5% to 7,526.70, while India’s Sensex was up 2.2% to 60,558.20.
In the bond market, the yield on the two-year government bond neared its highest level in more than three years, jumping to 2.45% from 2.28% late Thursday.
The two-year yield again outperformed the ten-year yield, which also rose, but not as quickly. It topped the 10-year yield last week for the first time since 2019. This is seen as a potential omen of a recession, but it’s not a perfect indicator.
Oil and gas prices have risen as demand recovers from the depths of the COVID-19 pandemic. The invasion of Ukraine by Russia, a major oil and gas producer, has increased the risk that sanctions and export restrictions could cut supplies.
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A barrel of US crude was up 46 cents to $99.73 a barrel in electronic trading on the New York Mercantile Exchange early Monday. It fell 1% on Friday to $99.27. It briefly touched $130 early last month when crude oil supply disruptions were at their peak.
Brent crude, the international price standard, rose 59 cents to $104.98 a barrel.
In currency trading, the dollar bought 122.72 Japanese yen, up from 122.61 late Friday. The euro rose to $1.1052 from $1.1042.