Stocks closed the day mixed, with further rotations into sectorswith more tangible products and assets that are less sensitive to futureinterest rate assumptions, as a solid jobs report reduced the odds of multipleinterest rate cuts. Based on the current report, the economy added 130,000 jobsas opposed to the expected 55,000. The unemployment rate also dropped from 4.4%to 4.3%, and hourly wages increased by 0.4%. Despite significant revisions toprior-year data, the jobs report provided signs that the labor market mighthave been stabilizing at a time when it became questionable whether the UnitedStates requires the same level of job creation as in past years, given thatimmigration has decreased significantly, allowing for a lower equilibrium inthe job market.
The Dow Jones Industrial Average fell by 67 points to 50,121. TheNASDAQ rose 0.29% to 25,201. The S&P 500 ended the day flat at 6,941.Energy, consumer staples, and materials were the biggest sector gainers, whilefinancials was the biggest sector loser. AI and AI-related investments driftedaway from software toward hardware, with semiconductor stocks postingsignificant gains, while electricity-related stocks saw modest gains.
The bond market broke its momentum and faced a moderate decline.The U.S. 5-year Treasury yield rose 4 basis points to 3.74%, and the 10-yearyield rose 3 basis points to 4.17%.
Weekly jobless claims and existing home sales data will bereleased tomorrow, both of which will provide further insight into the Americaneconomy. This is Adams Wealth Advisors. Thank you for listening.