A rebound in chipmakers buoyed Wall Street as dip buyers emerged despite economic data that reinforced speculation the Federal Reserve will boost interest rates in December.
In the aftermath of a selloff that rattled global markets, the Nasdaq 100 rose 2%. A gauge of chip giants climbed 4%. Tech shares also lifted the S&P 500 even as most of its firms dropped. Short-dated Treasuries underperformed. Oil wavered as traders weighed progress in efforts to de-escalate the Iran war.
Job growth jumped in October and the unemployment rate fell, a sign of labor-market strength in an expanding economy.
That contradicts the bearishness of the past few days, reminding investors that artificial intelligence is not the economy, according to Florian Ielpo at Lombard Odier Asset Management.
“The key point is that this report once again confirms the economic strength highlighted by the Fed and all but seals the case for a December rate hike,” he added. “Main Street is doing just fine, thank you.”