Stock futures climbed after a four-day equity rout, with traders brushing off concerns about a still strong labor market keeping the Federal Reserve on its aggressive hiking path.
(Bloomberg) — Stock futures climbed after a four-day equity rout, with traders brushing off concerns about a still strong labor market keeping the Federal Reserve on its aggressive hiking path.
A rebound in big tech helped lift stocks in early trading. Two-year US rates, which are more sensitive to imminent Fed moves, trimmed most of a surge that sent them to the highest level since 2007. The dollar fell.
Nonfarm payrolls increased 261,000 last month following an upwardly revised 315,000 gain in September, a Labor Department report showed Friday. The unemployment rate ticked up to 3.7% as participation edged lower, while average hourly earnings accelerated from the prior month.
Investors are fleeing to the safety of cash funds as the Fed remains firmly hawkish, according to strategists at Bank of America Corp.
The asset class had inflows of $62.1 billion in the week through Nov. 2, according to a note from the bank citing EPFR Global data. That’s contributed to $194 billion of inflows into cash from the start of October — the fastest start to a quarter since 2020.
In corporate news, US-listed Chinese stocks jumped as fresh optimism over an easing of Covid restrictions and progress in the US audit inspection of Chinese companies fueled appetite for beaten-down names. DoorDash Inc. reported revenue that beat estimates, a sign that customers are still ordering pricey takeout despite a squeeze from higher inflation.
Some of the main moves in markets:
Stocks
- Futures on the S&P 500 rose 0.9% as of 8:57 a.m. New York time
- Futures on the Nasdaq 100 rose 1.1%
- Futures on the Dow Jones Industrial Average rose 0.7%
- The Stoxx Europe 600 rose 1.6%
- The MSCI World index rose 0.7%
Currencies
- The Bloomberg Dollar Spot Index fell 1%
- The euro rose 0.9% to $0.9837
- The British pound rose 0.8% to $1.1254
- The Japanese yen rose 0.7% to 147.26 per dollar
Cryptocurrencies
- Bitcoin rose 2.2% to $20,686.57
- Ether rose 3.9% to $1,600.19
Bonds
- The yield on 10-year Treasuries advanced three basis points to 4.18%
- Germany’s 10-year yield advanced five basis points to 2.29%
- Britain’s 10-year yield advanced four basis points to 3.56%
Commodities
- West Texas Intermediate crude rose 4.3% to $91.92 a barrel
- Gold futures rose 1.9% to $1,661.60 an ounce
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