Daily Market Color March 5, 2021Jobs Report Fuels Stock Rebound Financial markets remain volatile following strong jobs report The U.S. added 379,000 jobs in February, blowing past economists’ expectations of 200,000, while the unemployment rate ticked lower to 6.2% (6.3% in January). Major equity indices whipsawed between gains and losses throughout the trading session before ultimately finishing in the black, the S&P 500 notably wiping out all of its losses from this past week & increasing 1.95%. Similar volatility was observed in bond markets, where the 10yr Treasury gapped higher to 1.626% immediately following the payroll release, but stabilized throughout the day before ultimately settling near 1.56%. Oil continues to rally U.S. benchmark crude futures topped $66 a barrel on Friday due to tight supply with OPEC+ decision on Thursday to continue current output levels through April. EUR/USD turns lower after jobs report EUR/USD is breaking lower at 1.1915, falling below 1.2000 to levels not seen since the presidential election. Watch for a new range with a stronger USD if these levels hold – the currency pair spent most of H2 last year in the 1.1600 – 1.2000 range. Source: Bloomberg
