Nasdaq leads US stocks lower as yields rise despite weak jobs report

Nasdaq leads US stocks lower as yields rise despite weak jobs report

Traders work on the floor of the New York Stock Exchange
Spencer Platt/Getty Images

The Nasdaq Composite fell Friday after the September jobs report missed expectations.

Rising bond yields hurt tech stocks as the jobs report may not delay Fed tapering.

The US economy created 194,000 jobs in September, below expectations of 500,000

US stocks closed mixed Friday, with a rise in bond yields weighing on tech shares, suggesting investors expect the Federal Reserve to stay with its plan to reduce asset purchases despite the weak September jobs report. The Nasdaq Composite lagged other Wall Street benchmarks as large-cap tech stocks declined. The S&P 500 and the Dow industrials notched modest gains after a seesaw session. The moves took place after the Labor Department said 194,000 jobs were created last month, well below the estimate of 500,000 jobs from economists surveyed by Bloomberg. But the number of jobs in July and August were upwardly revised.The 10-year Treasury yield rose to 1.6%, the highest since June, after the report, suggesting investors still see the Fed reducing the amount of monthly buying in mortgage-backed securities and government bonds despite the big miss in the September jobs report. Elevated bond yields hurt shares of tech companies as they reduce their future cash flows. There are expectations the Fed will announce its tapering plan as soon as November.
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