Employment Figures Ease Interest Rate Fears, Stocks Vault
May 03,2024 04:26 pm EST
Stocks jumped sharply Friday after a softer-than-expected April jobs report boosted hopes that the Federal Reserve could start cutting interest rates soon.
The Dow Jones Industrials popped 450.02 points, or 1.2%, to finish a strong Friday at 38,675.68.
The S&P 500 galloped 63.59 points, or 1.3%, to 5,127.79, and notch its best day since February.
The NASDAQ zoomed 315.37 points, or 2%, to 16,156.33.
All the averages capped off a winning week. The Dow jumped 1.2%, and NASDAQ rose 1.3%, while the S&P added 0.6%.
Strong quarterly reports from major Dow components also contributed to Friday's rally. Apple advanced 6% after it announced a $110-billion share repurchase and a top -and bottom-line beat. Biotech stock Amgen surged nearly 12% after posting better-than-expected earnings and offering a positive update on an experimental obesity drug. Shares headed for their best day since 2009.
Friday's non-farm payrolls report showed 175,000 jobs gained in April, below the 240,000 jobs expected by economists surveyed by Dow Jones. The unemployment rate edged up to 3.9%, versus 3.8% in the prior month, according to the Bureau of Labor Statistics. Wage figures also came in less than expected — an encouraging sign for inflation.
With Friday's moves all the major averages are headed to finish the week with gains. The Dow and NASDAQ have added 1.2% each, while the S&P is up 0.3%.
Strong quarterly reports from major Dow components contributed to Friday's rally. Apple advanced 7% after it announced a $110-billion share repurchase and a top -and bottom-line beat. Biotech Amgen surged 14% after posting better-than-expected earnings and offering a positive update on an experimental obesity drug.
Prices for the 10-year Treasury jumped, lowering yields to 4.50% from Thursday's 4.58%. Treasury prices and yields move in opposite directions.
Oil prices lost 85 cents to $78.34 U.S. a barrel.
Gold prices retreated 30 cents to $2,309.30.
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