- The major Wall Street indices opened near Thursday’s closing levels.
- Investors assess the disappointing employment report and the implications for the Fed’s policy outlook.
- Energy stocks are trading in positive territory amid rising crude oil prices.
The main US stock indices They opened little changed on Friday as investors weigh in on the latest labor market report and what it means for the Federal Reserve’s policy outlook.
At time of writing, the S&P 500 Index was posting small daily gains at 4,402, the Dow Jones Industrial Average was up 0.1% to 34,790 and the Nasdaq Composite was up 0.15% to 14,680.
The US Bureau of Labor Statistics reported on Friday that non-farm payrolls (NFP) increased by 194,000 in September, compared to the market’s expectation of 500,000. On a positive note, the unemployment rate dropped to 4.8% from 5.2% in August even though the labor force participation rate only fell 0.1 percentage points to 61.6%.
Although the disappointing NFP could be seen as a factor that could weigh on risk sentiment, it could also allow the Fed to delay its tapering, which is a positive development for equities.
Among the top 11 sectors of the S&P 500, the Energy Index is up 1.7% supported by a 1% rise seen in US crude oil prices.On the other hand, the defensive real estate index is losing 0.4% .
S&P 500 chart (daily)
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