Rate-Sensitive Stocks Rally After Weak Jobs Data: Here's Why - VanEck Gold Miners ETF (ARCA:GDX), ASE

Rate-Sensitive Stocks Rally After Weak Jobs Data: Here's Why — VanEck Gold Miners ETF (ARCA:GDX), ASE explains how a soft June US jobs report turned into a boost for rate-sensitive equities on Thursday. The US economy added only 57,000 jobs in June, roughly half of the 110,000 economists expected, and the Bureau of Labor Statistics revised down by a combined 74,000 jobs across prior months. Markets repriced Fed expectations, with the probability of a July 29 rate hike falling to around 20% via the CME FedWatch Tool, while Treasury yields and the dollar dropped.

Assets tied closely to interest rates moved sharply: the 2-year Treasury yield fell to 4.12% and the US dollar index decreased 0.7% to 100.73. Spot gold rose 2.5% to about $4,134 per ounce, and silver gained 4.3% to around $61.80. The rally extended to miners, aided by operating leverage to metal prices. Among large-cap rate-sensitive names, Robinhood Markets surged 9% to $118.39, and ASE Technology Holding rose 4.1% to $44.74, as long-duration growth and fintech stocks benefited from easing hike fears.