Wall Street opens mixed as surprise job losses cool rate-hike bets
US stocks opened mixed Friday as a surprise drop in August payrolls raised doubts about a September Fed rate hike.
US equity markets delivered a split opening on Friday, with the S&P 500 and the tech-heavy Nasdaq Composite advancing while the Dow Jones Industrial Average slipped, after fresh data revealed an unexpected contraction in the American labour market.
The payrolls report, which showed the economy shed jobs last month, has cast fresh uncertainty over the Federal Reserve's policy path. Investors had been bracing for a possible interest-rate increase at the central bank's September meeting, but the weaker-than-expected jobs figure has now dampened those expectations.
At the opening bell, the S&P 500 climbed 25.2 points, or 0.33%, to 7,735.18. The Nasdaq Composite rose more sharply, gaining 186.3 points, or 0.71%, to 26,534.66. In contrast, the Dow Jones Industrial Average dipped 35.8 points, or 0.07%, opening at 53,849.26.
The divergence between the indices suggests investors are rotating toward growth and technology stocks, which tend to benefit from a scenario where the Fed holds off on tightening monetary policy. A softer jobs market typically reduces the urgency for the central bank to act aggressively on rates.
Trading volumes were moderate as market participants digested the implications of the payrolls data for the broader economy and corporate earnings outlook in the months ahead.