S&P 500 Index opens sharply higher after strong NFP report

Wall Street's main indexes are posting large gains on Friday.
Energy shares rise sharply on the back of surging crude oil prices.
Nonfarm Payrolls in the US rose by 379K in February.

Eren Sengezer FXStreet

Major equity indexes in the US started the last day of the week decisively higher with the upbeat US jobs report providing a boost to risk sentiment. As of writing, the Dow Jones Industrial Average was up 0.6% on the day at 31,113, the S&P 500 Index was rising 0.48% at 3,786 and the Nasdaq Composite was gaining 0.3% at 12,501.

Earlier in the day, the US Bureau of Labor Statistics reported that Nonfarm Payrolls in the US increased by 379,000 in February and surpassed the market expectation of 182,000 by a wide margin. Furthermore, January's reading got revised up to 166,000 from 49,000.

Reflecting the positive shift in market mood, the CBOE Volatility Index (VIX), Wall Street's fear gauge, is down 7.5% on the day.

Among the 11 major S&P 500 sectors, the Energy Index is up 2.6% supported by a 3% increase in crude oil prices. On the other hand, the Consumer Discretionary Index was losing 1% as the biggest percentage decliner after the opening bell.

S&P 500 chart (daily)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.