DJIA: 34,818.27, up 139.92
S&P 500: 4,545.86, up 15.45
Nasdaq: 14,261.50, up 40.98

Stocks turn higher; yield curve inverts

U.S. stocks turned higher on Friday despite some concerns on Wall Street around an inverting Treasury yield curve following an upbeat monthly jobs report. The S&P 500 and Nasdaq Composite each rose 0.3%, enough to help the two indexes string together a three-week winning streak for the first time since November 5. The broad benchmark ended the week less than 0.1% higher, while the tech-heavy Nasdaq capped a 0.7% weekly gain. The Dow added 139 points, paring its five-day decline to just 0.1%. All three major averages just weathered their worst quarterly performance since 2020 despite robust monthly gains.

On the data front, non-farm payrolls increased by 431,000 in March, modestly below estimates of a 490,000 gain, though headline numbers from the prior two months were upwardly revised. The unemployment rate fell to a fresh pandemic-low of 3.6%, while wage inflation jumped a larger-than-projected 5.6% year-over-year. Separately, an update from the Institute for Supply Management (ISM) revealed U.S. manufacturing growth unexpectedly decelerated in March. The prices paid component reflected the largest monthly increase since December 2020.

Shorter-term Treasuries were pressured as the solid jobs report bolstered the case for more aggressive monetary policy tightening by the Federal Reserve (Fed). The more Fed-sensitive two-year note yield spiked 14 basis points (0.14%) to 2.45%, eclipsing the yields on both the longer-dated 10-year note and 30-year bond (2.37% and 2.42%, respectively). In commodities, West Texas Intermediate crude suffered its worst week since April 2020, sliding 12.6% to $99.54/barrel.

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