The U.S. stock market closed higher following a stronger-than-expected jobs report for November. The U.S. added 199,000 new jobs, leading to a decrease in the unemployment rate to 3.7%. This robust job market performance has led to speculations that the Federal Reserve may not cut interest rates as quickly as previously anticipated.
In the tech sector, Apple is reportedly increasing its iPhone production in India. However, Google's parent company, Alphabet, experienced a 1.4% slip, while other Big Tech stocks saw a rise. The retail sector also saw some notable developments, with RH (formerly Restoration Hardware) reporting a per-share loss and narrowing its full-year guidance due to high mortgage rates.
The yield on the 10-year Treasury rose to 4.22%, and the yield on the two-year Treasury rose to 4.72%. These changes in the Treasury yields are being closely watched by investors as they can influence borrowing costs for businesses and consumers, and thus impact the broader economy.
Despite the overall positive job market data, some sectors such as manufacturing and construction may experience some weakness, while retail and leisure sectors are expected to slow down. Wage growth, although higher than a decade ago, is showing a slow downward trend.
The return of workers from strikes could potentially boost the November total. However, these developments have led to concerns that a strong jobs report could undermine confidence in the Federal Reserve's plan to end interest rate hikes. As such, wage growth and the unemployment rate continue to be closely watched indicators of economic health.
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