- Treasuries fell after a strong US jobs report raised expectations of tighter monetary policy, while US stocks surged on the back of Amazon earnings.
- The yield on the 10-year note in the United States increased to 1.92% as traders gave roughly equal odds to the possibility that the Federal Reserve will begin raising interest rates with a 50 basis point hike in March rather than a typical quarter-point move.
- The S&P 500 gained 0.5%, reversing a previous loss, while the Nasdaq 100 gained 1.3 percent, with Amazon up 14% on a price increase for Prime memberships. The dollar was stronger against major currencies, but it still had its worst weekly performance since 2020.
- Despite a surge in COVID-19 infections and related business closures, US employers added more jobs than expected last month. Nonfarm payrolls increased more than expected, and average hourly earnings increased 0.7% month over month.
- It's been a wild week in markets, with investors shaken by disappointing earnings from US tech behemoths like Facebook-owned Meta Platforms, which lost more than $250 billion in market value on Thursday. Positive earnings from Amazon, on the other hand, helped to boost sentiment, with the online marketplace and tech company adding roughly $190 billion to its market capitalization.
- Dip buyers hoped that a strong earnings season would keep equities appealing and alleviate some of their concerns about rate hikes in the face of higher inflation. Of the 272 companies in the S&P 500 that have reported results, 82% have met or exceeded expectations, with profits coming in 8.8% higher than expected.
- Crude oil rose 2.2% in New York, extending a seven-year high, while banks such as Goldman Sachs Group now expect Brent to reach $100 per barrel.
