Stocks rose sharply on Friday April jobs report weaker than expected Boosting hopes that the Federal Reserve may soon begin cutting interest rates.
The Dow Jones Industrial Average rose 420 points, or 1.1%. The S&P 500 rose 1.1% and the Nasdaq rose 2%.
With Friday’s moves, all major stock indexes are on track to cap off a positive week. The Dow and Nasdaq rose 1.1% and 1.4% respectively, while the S&P rose 0.5%.
Friday’s nonfarm payrolls report showed that payrolls rose by 175,000 jobs in April, below the 240,000 jobs expected by economists polled by Dow Jones. The unemployment rate rose to 3.9% from 3.8% last month, according to the Bureau of Labor Statistics. The wage data also came in below expectations, an encouraging sign for inflation.
“This does ease investor concerns that the economy could overheat or re-accelerate and revives hopes of a rate cut,” said Emily Rowland, co-chief investment strategist at John Hancock Investment Management. “This is where interest rates come down. , bonds are rising, and stocks are rising. Bad news for the job market means the Fed may start cutting interest rates later this year.”
Traders expect a second rate cut before the end of the year, after job growth in April was weaker than expected and wage gains slowed. That chance rose to about 72% on Friday morning after falling to less than 50% the day before, according to the agency. CME Group’s Fed Watch Tracker of futures market pricing.
Interest rates also fell after the labor report was released, with the 10-year Treasury yield falling below 4.5%. The trend benefited interest-rate-sensitive big tech stocks, with Nvidia and Advanced Micro Devices last up about 3%. Microsoft and Meta Platforms each rose 2%, while the S&P Information Technology sector soared 3%.
Strong quarterly reports from major Dow Jones components also fueled Friday’s gains. apple The company’s shares rose 7% after announcing a $110 billion share buyback and achieving revenue and profit breakthroughs.Biotechnology stocks Amgen Shares soared more than 12% after posting better-than-expected earnings and providing positive developments on an experimental obesity drug.stocks go to them Best day since 2009.
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