US stocks open higher after employment slows

The useful part

US stocks are trading higher as slower jobs gains for the month of September reduces the pressure on the Fed to raise rates again. The market's initial reaction suggests investors are giving more weight to relief on interest rates than to the slowdown in hiring. Payrolls increased just 29,000, while July and August were revised lower by a combined 60,000.

How it works

• Lower yields reduce the rate investors use to value future corporate earnings, supporting stock valuations—particularly technology and growth shares.
• They also ease financing conditions and make bonds less competitive with equities.
• Technically the major US stock indices are opening higher with the NASDAQ index rising by 1.17%.
• This week, the price lows did stay above the rising 100 hour MA and also found support buyers within the swing area between 26676 and 26856.

Details worth keeping

For stocks, the transmission comes through lower Treasury yields. The high price has reached a high of 27247.97. That is still short of the high price reached on September 22 at 27288.79.