US stocks rise during opening trade on solid jobs report

Major US equity indices witnessed positive opening in wake of stronger-than-expected monthly jobs report, albeit have struggled to build on early gains.

Investors' sentiment got a boost after the official nonfarm payrolls data showed the US economy added 235K jobs in February, with the unemployment rate ticking lower to 4.7%. Solid jobs number reconfirmed consensus view that the Fed would eventually raise interest-rates at its upcoming meeting next week. 

A modest recovery in oil prices, after having dropped to the lowest in more than three months on Thursday, also helped lift investors' appetite for riskier-assets - like equities.

During opening hour of trading, the Dow Jones Industrial Average moved back above 20,900 and traded higher by around 75-points, while the broader S&P 500 Index added 12-points to 2,376. Meanwhile, tech-heavy Nasdaq Composite Index gained over 30-points and rose to 5,870.

Technical outlook (S&P 500)

Carol Harmer, Founder at charmertradingacademy.com notes, “we know we have support down at 2355/52…..and if this support is lost then I think we trade lower….if we lose tis then I think 2345/42 a viable short term target.. Since Nov the weekly charts have been flatlined above 95%...now they are turning down...So I am going to use any rally towards 2400 to go short….and stop only placed on the 2nd break of 2405...I am loathe to go long up here….but short term if above 2405 we should see 2425…”