Kamal Ghorui
US stocks moved closer to record levels on Wednesday after data showed the country’s unemployment rate unexpectedly improved last month, boosting investor confidence about the resilience of the economy.The S&P 500 rose 0.5% and was trading just below its all-time high set late last month. The Dow Jones Industrial Average was up 222 points, or 0.4%, while the Nasdaq Composite gained 0.5% as of 9:35 am Eastern time, AP reported.Treasury yields also climbed after the US Labor Department said employers added 130,000 jobs last month, higher than economists’ expectations of 75,000. The stronger data helped ease concerns triggered a day earlier by a report indicating US household spending may be slowing.However, revisions in the report showed employers added only 181,000 jobs for the whole of last year, sharply lower than the previously reported 584,000, marking the weakest annual performance since 2020 when the COVID-19 pandemic disrupted the economy.“We all knew there would be downward revisions, but these were better than expected,” Brian Jacobsen, chief economic strategist at Annex Wealth Management, said.Energy and industrial stocks led gains in the S&P 500, reflecting optimism around economic activity. Caterpillar rose 3.9%, while Exxon Mobil gained 2.4%.The gains offset declines in some stocks. Moderna fell 10.5% after saying the US Food and Drug Administration is refusing to consider its application for a new flu vaccine made using mRNA technology. The move reflects heightened regulatory scrutiny of vaccines under Health Secretary Robert F Kennedy Jr.Robinhood Markets dropped 11% despite reporting stronger-than-expected quarterly profit, as revenue missed forecasts and analysts flagged concerns about rising expenses in 2026 and weak crypto trading volumes.Kraft Heinz declined 4.1% despite posting better-than-expected quarterly results. CEO Steve Cahillane said the company is pausing plans to split into two businesses while investing $600 million in marketing, sales, and research and development to restore growth.In the bond market, the yield on the 10-year Treasury rose to 4.17% from 4.16% late Tuesday, while the two-year Treasury yield increased to 3.51% from 3.45%.The stronger jobs data prompted traders to scale back expectations on the number of interest rate cuts by the US Federal Reserve this year, though most still expect at least two cuts, according to CME Group data.The Fed has paused rate cuts for now, but a weaker labour market could have prompted quicker easing. The next key data point for markets will be US consumer inflation data due on Friday.Globally, stock markets were mostly higher. South Korea’s Kospi rose 1%, while the UK’s FTSE 100 gained 0.9%.
