A lackluster monthly jobs report sparked a rebound in technology shares and other growth stocks Friday while triggering a decline in government-bond yields.
The Nasdaq Composite added 1.3%, outpacing its peers. The S&P 500 ticked up 0.7%, a day after the broad-market index closed near its all-time high. The Dow Jones Industrial Average inched up 146 points, or 0.4%.
The yield on the benchmark 10-year U.S. Treasury note fell as low as 1.487%, according to Tradeweb, compared with roughly 1.570% just before the report was released and 1.561% Thursday. But it was recently back to 1.544%—at the lower end of its trading range for the past several weeks—and on track for a sixth consecutive day of declines.
The monthly jobs report showed employers added 266,000 jobs in April and the unemployment rose to 6.1%. These figures significantly missed the expectations of economists who estimated that payrolls grew by one million and the unemployment rate fell to 5.8%. It sat at a record 14.8% in April 2020 in the midst of the early stages of the pandemic.
The jobs miss comes as many investors had ramped up bets that the economy was poised for a rapid upswing in coming months as businesses around the country reopen and many Americans have been vaccinated. The latest data dampened some of those optimistic projections, and led some analysts to re-evaluate their expectations on how quickly the Federal Reserve would move to raise rates in the future.