US stocks surged on Friday following a stronger than expected March jobs report, with the economy adding 303,000 jobs last month, well ahead of economist estimates of 212,000 jobs. The positive data helped to recoup most of Thursday’s losses in the stock market.
Investors are optimistic about the strong economic data, believing that the expansion will drive earnings growth. The report also showed muted wage inflation, which could suggest a mild Consumer Price Index (CPI) report next week.
“The economy is running strong and far from recession, with the economy averaging 276,000 job growth per month over the last quarter,” said Carson Group strategist Sonu Varghese. “This would push out any rate cuts by the Fed, but easing wage growth means we’re not in the middle of a labor-market induced inflation surge.”
In commodities, West Texas Intermediate crude oil edged higher to $86.76 a barrel, while Brent crude jumped to $91.00 a barrel. Gold also saw a significant increase, jumping to $2,343.20 per ounce. The 10-year Treasury yield rose to 4.39%, and Bitcoin dropped to $67,844.
Overall, the strong March jobs report has boosted investor confidence in the economy and the stock market, with hopes for continued growth and earnings expansion in the coming months.
