(Bloomberg) — Stocks extended their weekly rally after weaker-than-forecast U.S. jobs data bolstered the case for President Joe Biden’s $1.9 trillion coronavirus relief package. The dollar fell.

Loading...

Load Error

Most major groups in the S&P 500 advanced, with the benchmark gauge climbing toward another record in its best week since November. Commodity and consumer-staple shares led gains on Friday, while tech underperformed. The surge in GameStop Corp. after Robinhood Markets Inc. removed limits on buying the stock did little to repair the video-game retailer’s weekly plunge of about 80%. Two-year Treasury note yields matched their May 2020 record low amid a drop across shorter-dated rates.

The recovery in the U.S. labor market disappointed for a second month as modest job growth highlighted the persistently difficult prospects for millions of unemployed Americans. Nonfarm payrolls increased by just 49,000 after a downwardly revised 227,000 December drop, strengthening the case for another relief package. President Biden gave the strongest indication yet he’ll push for stimulus without Republican support, saying Friday’s weak economic data show the risk of doing “too little.”

“The market is going to be in a bad news is good news scenario — bad news is temporary and likely to be met with additional support,” said Steve Chiavarone, portfolio manager and equity strategist at Federated Hermes. “Many investors would have a very hard time selling a market when they know vaccination is coming and they know additional stimulus is coming. It’s just really hard to sell that.”



chart: S&P 500 Index is on track for its best week since November


© Bloomberg
S&P 500 Index is on track for its best week since November

Biden’s relief proposal took a major step forward with an early morning vote in the Senate along party lines that showcased the Democrats’ ability to proceed on a bill without Republican support.

In corporate news, Pinterest Inc. surged as the digital scrapbooking and search company reported sales that topped estimates. In the meantime, Peloton Interactive Inc. sank after saying said it can’t keep up with surging demand for its exercise machines and warning that profit will be squeezed.

These are some of the main moves in markets:

Stocks

The S&P 500 climbed 0.4% as of 2:10 p.m. New York time.The Stoxx Europe 600 Index was unchanged.The MSCI Asia Pacific Index increased 0.9%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.5%.The euro jumped 0.7% to $1.2042.The Japanese yen strengthened 0.1% to 105.39 per dollar.

Bonds

The yield on 10-year Treasuries rose two basis points to 1.15%.Germany’s 10-year yield advanced one basis point to -0.45%.Britain’s 10-year yield jumped four basis points to 0.482%.

Commodities

West Texas Intermediate crude climbed 1.1% to $56.83 a barrel.Gold rose 0.9% to $1,810.82 an ounce.Silver added 2.1% to $26.90 per ounce.

For more articles like this, please visit us at bloomberg.com

©2021 Bloomberg L.P.

Continue Reading



Source link