Jobs data allays some fears of a hawkish Fed

  • US stocks gained and oil rose as traders digested August jobs numbers.
  • Payrolls increased by 315,000 jobs last month, mostly in line with expectations.
  • But the major stock indexes are still heading for weekly losses.

US stocks rose on Friday as the monthly jobs report eased fears that the Federal Reserve would continue its extra-aggressive rate hikes.

Payrolls rose by 315,000 in August, mostly in line with Wall Street expectations. That came as a relief after other data earlier in the week pointed to a tight labor market that could give the Fed more leeway to remain hawkish. Job postings rose more than expected and unemployment insurance claims continued to decline.

“Despite the increase, the unemployment rate is still below what most FOMC members would equate at full employment, while headline inflation and core inflation remain well above their target of 2 0%, despite signs of slowing headline inflation,” said Richard F. Moody, chief economist at Regions Financial.

Stocks are still heading for weekly losses, with the Dow Jones down 1.9% while the S&P 500 and Nasdaq are down more than 2%.

Here’s where the U.S. indices stood when the market opened at 9:30 a.m. on Friday:

It may be too early for investors to get defensive, according to a JPMorgan strategist who says the market is starting to look less overvalued.

Elsewhere, a Russian lawmaker says Europe’s energy crisis is self-inflicted and leaders can remedy the situation by lifting sanctions and restarting the Nord Stream 2 gas pipeline.

And in Germany, the shallow Rhine is prompting power producers to warn that output could plummet as coal becomes harder to come by.

Oil rose significantly, with West Texas Intermediate up 2.81% at $89.10 a barrel. International benchmark Brent jumped 3.01% to $95.15.

Gold climbed 0.84% ​​to $1,7120.62 an ounce. The 10-year yield fell 4.2 basis points to 3.225%.

Bitcoin was 1.93% higher at $20,362.43.

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