S&P 500 Index notches new record-high above 4,220 despite disappointing NFP report

S&P 500 Index touched a new all-time high on Friday.
Nonfarm Payrolls in US rose by 266K in April vs 978K expected.
Technology shares post strong gains after the opening bell.

Eren Sengezer FXStreet

Wall Street's main indexes started the last trading day of the week in the positive territory despite the gloomy April jobs report. As of writing, the S&P 500 Index was trading at a new all-time high of 4,222, rising 0.5% on the day, the Dow Jones Industrial Average was up 0.25% at 34,636 and the Nasdaq Composite was rising 1% at 13,750.

Earlier in the day, the data published by the US Bureau of Labor Statistics revealed that Nonfarm Payrolls in the US increased by 266,000 in April. Although this reading missed the market expectation of 978,000 by a wide margin, stock markets reacted positively with investors pricing ongoing fiscal and monetary policy support without worrying about the economy overheating.

Among the 11 major S&P 500 sectors, the risk-sensitive Technology Index is rising 0.75% on a daily basis. On the other hand, the Financials Index stays in the negative territory pressured by declining US Treasury bond yields.

S&P 500 chart (daily)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.