US stocks close higher as Treasury yields retreat
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Traders work on the floor of the New York Stock Exchange, during morning trading on Oct 4, 2023, in New York City.
PHOTO: AFP
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NEW YORK - Wall Street stocks ended the day higher on Wednesday, as Treasury yields pulled back on the heels of a weak private hiring report.
The US private sector added just 89,000 jobs in September according to payroll firm ADP, and the hiring slowdown could ease pressure on policymakers to raise interest rates further.
The Dow Jones Industrial Average closed up 0.4 per cent at 33,129.55.
The broad-based S&P 500 rose 0.8 per cent to 4,263.73, while the tech-rich Nasdaq Composite Index surged by 1.4 per cent to 13,236.01.
While the 10-year US Treasury note hit a 16-year peak earlier this week, it retreated on Wednesday, providing some reprieve.
The 10-year note is a closely watched proxy for interest rates and its recent surge comes amid fears that the Federal Reserve will keep interest rates elevated for longer.
On Wednesday, oil prices moved sharply lower as well.
Looking ahead, investors are keeping a close eye on official employment data due Friday, for more signals on the health of the labour market.
“The ADP release should always be taken with a pinch of salt ahead of the US jobs report on Friday and I have no doubt today’s is being viewed no differently,” said Mr Craig Erlam, of the OANDA trading platform, in a note.
“If it can be replicated later this week then people will certainly sit up and take notice,” he added, referring to the slowdown in hiring. AFP
