- US stocks rose as investors sought stability after a sharp sell-off on Thursday
- The Dow gained 273.48 points, S&P 500 rose 32.90, Nasdaq increased 82.19 points
- Moderation in Treasury yields, oil price retreat, and strong jobs data boosted sentiment
US stocks rose on Friday as investors attempted to stabilise after a sharp sell-off in the previous session, with easing Treasury yields, a pullback in oil prices and stronger-than-expected labour-market data supporting sentiment.
The Dow Jones Industrial Average rose 273.48 points, or 0.52%. The S&P 500 climbed 32.90 points, or 0.43%, while the Nasdaq Composite advanced 82.19 points, or 0.32%. Goldman Sachs Group shares rose 2.32%, while JPMorgan Chase & Co. was up 1.23%. Nike and Johnson & Johnson were up nearly 1%. On the other hand, Apple Inc. fell 1.26% and Walmart Inc. was down 0.77%.
Three key factors supported the early improvement in market sentiment: a moderation in US Treasury yields, a retreat in oil prices after crude briefly moved towards $95 a barrel, and US labour-market data that came in stronger than expected.
US Treasury yields had resumed their climb on Thursday, particularly at the longer end of the curve, putting renewed pressure on equities. Concerns around inflation, elevated oil prices and the supply of US government debt have contributed to the recent bond-market volatility.
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Government measures aimed at calming the Treasury sell-off have so far failed to fully eliminate concerns surrounding inflation and the rising supply of government debt. The increase in yields was a key factor behind Thursday's weakness across Wall Street.
During Thursday's session, the S&P 500 and Nasdaq Composite declined 0.9% and 1%, respectively. The S&P 500 is now down 1.9% for the week, while the Nasdaq has fallen 2.5%. Both indexes are on track to snap three consecutive weeks of gains.
Oil prices provided another important signal for investors on Friday. Crude prices initially climbed towards $95 a barrel, raising concerns that renewed energy inflation could complicate the outlook for interest rates.
However, oil prices subsequently retreated to around $92 a barrel, providing some relief to equity markets.
Stronger-than-expected US labour-market data also helped support equities. Initial jobless claims stood at 206,000 for the week ended August 14, below the 210,000 expected by economists.
The data points to continued resilience in the US labour market and could reduce pressure on the Federal Reserve to deliver a rate cut at its September meeting.
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