Wall Street Rallies as Tech Stocks Shine, oil gains; Markets Await U.S. Jobs Report

Wall Street Extends Winning Streak as Nasdaq Climbs 1.5%

U.S. equities continued their upward trajectory yesterday, buoyed by robust earnings from Meta and Microsoft. The S&P 500 and Dow Jones marked their eighth consecutive day of gains, advancing 0.63% and 0.21%, respectively. Technology stocks drove the Nasdaq higher, with the index surging 1.52% by the close.

The U.S. dollar strengthened against major currencies, with the yen particularly weak. The DXY Index rose by 0.59% to 100.20. Treasury yields also increased, with the 2-year yield up 9.6 basis points to 3.698% and the 10-year yield gaining 5.5 basis points to 4.217%.

In commodities, oil prices rebounded following news of additional U.S. sanctions on Iran. Brent crude climbed 1.34% to $61.88 per barrel, while WTI gained 1.77% to $59.21. Gold, however, declined further, losing 1.44% to settle at $3,240.29.

Focus Shifts to U.S. Non-Farm Payrolls

All eyes are on today’s U.S. Non-Farm Payrolls report, a key indicator expected to shape market sentiment. Analysts forecast a gain of 138,000 jobs for the previous month, with Average Hourly Earnings projected to remain steady at 0.3% m/m and the Unemployment Rate unchanged at 4.2%. Any significant divergence from these expectations could trigger substantial market reactions.

Recent market resilience could be tested by weaker-than-expected jobs data, potentially reversing the gains made earlier this month. Conversely, a strong report would suggest a robust economy, supporting further market advances.

Additional Data and Global Market Highlights

While U.S. jobs data takes center stage, other economic events also demand attention. Australia is set to release its Retail Sales figures early in the Asian session, with expectations for a 0.4% m/m increase. In Europe, inflation data will dominate the morning, with the EU Flash CPI Estimate forecasted at 2.1% and Core CPI at 2.5%.

Markets in Asia continue to feel the absence of Chinese liquidity, while Australian traders will keep a close watch on the country’s parliamentary elections this weekend, which could influence Monday’s market open.

Oil Rises on Easing Trade Tensions

Oil prices gained ground on Friday following signals from China indicating potential talks with the U.S. to ease ongoing trade tensions. Brent crude rose 0.7% to $62.55 per barrel, while WTI increased by the same margin to $59.67. China's Commerce Ministry stated that Beijing is evaluating Washington’s proposal for negotiations, fueling optimism for de-escalation in the trade dispute between the world’s two largest economies and major oil consumers.