In a frantic trading session, the Nasdaq Composite forged a return to history books on Friday.
The technology-laden index had fallen by 2.6% when it hit an intraday nadir at 12,397.05, as data released by the Department of Labor on Friday showed that a solid recovery was underway on the job front, sharply increasing jobs. bond yields.
But when the day was over, the Nasdaq Composite COMP,
had closed 1.6% higher at 12,920.15, close to its high of the day, marking the sharpest intraday recovery since February 28, when the Nasdaq fell by 2.5% and closed 0.1% higher. On the other hand, the intraday recovery was the largest on the index since March 19, 2020, according to Dow Jones Market Data.
The optimism surrounding the employment picture has raised concerns that rising tech stocks would weaken at the prospect of rising bond yields and inflation, which the February non-farm payroll report supported.
Reading: MarketWatch market snapshot
The data showed that the United States created 379,000 jobs last month – well above the forecast of 210,000 – and that the unemployment rate fell from 6.3% to 6.2%.
The 10-year Treasury note TMUBMUSD10Y,
yield jumped briefly to around 1.62%.
Nasdaq Composite closed Thursday’s trading at about 27 basis points from a 10% drop from its most recent peak on February 12, which would meet the most commonly used definition for an asset correction.
The DJIA of the Dow Jones Industrial Average,
and the S&P 500 SPX index,
they were also traded close to the session highs, after both were under strong selling pressure at the start of the session.
Federal Reserve Chairman Jerome Powell’s comments on Thursday helped boost bond yields dramatically because they were read as showing insufficient concern about inflation as the economy recovers from the COVID-19 pandemic, with the help of another dose of Washington’s fiscal stimulus.