U.S. stocks started the day on a positive note as recent data from the Labor Department revealed stronger-than-expected job growth in August, despite a rise in the unemployment rate. According to FactSet, at the time of writing, the Dow Jones Industrial Average (DJIA) was up by 0.7%, the S&P 500 gained 0.7%, and the Nasdaq Composite climbed 0.8%.
In a report released on Friday, the Labor Department highlighted that the U.S. economy added 187,000 new jobs in August, surpassing the 170,000 forecasted by economists surveyed by the Wall Street Journal. Additionally, average hourly earnings experienced a 0.2% increase, resulting in a notable 4.3% wage growth over the past year.
While this is encouraging news, it’s important to note that the unemployment rate also saw a slight increase in August, rising to 3.8% from July’s 3.5%.
Simultaneously, there were some notable changes in the bond market. The yield on the 10-year Treasury note experienced a two basis point increase on Friday morning, settling at 4.11% according to FactSet. Conversely, two-year Treasury yields saw a decline of about four basis points, hovering around 4.8%.
Overall, these developments continue to shape the U.S. stock market and provide valuable insights into the current status of the country’s economy.