Dow rallies 308 points as traders digest blowout jobs report and rising yields

Dow rallies 308 points as traders digest blowout jobs report and rising yields

US stocks rebounded after a sharp sell-off Thursday with the Dow gaining over 300 points following a blowout jobs report while yields rose.

Businesses added 379,000 payrolls in February, the Bureau of Labor Statistics announced Friday. Economists surveyed by Bloomberg expected a gain of 200,000 payrolls. The US unemployment rate fell to 6.2% from 6.3%, according to the government report. Economists expected the rate to drop to stay steady at 6.3%.The 10-year Treasury yield extended its surge to top 1.61%. 

"The better-than-expected jobs report suggests a healthy economic rebound in progress and will likely add upward pressure on bond yields, as the bond market prices in a stronger economy, which may result in more consumer spending and eventually more inflation," said James McDonald, Hercules Investments CEO and CIO.

"The biggest risk to the stock market is if the Federal Reserve loses control of bond yields, which have experienced a meteoric rise over the past month. Inflation will continue to exert upward pressure on yields going forward and into the summer months," McDonald added.

On Thursday, Federal Reserve Chairman Jerome Powell gave little indication that the world's most powerful central bank was willing to intervene in the recent government bond sell-off.

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