U.S. Stocks Surge as Nonfarm Payrolls Report Disappoints, Apple Soars
In a surprising turn of events, U.S. stocks soared on Friday following the release of a much weaker-than-expected nonfarm payrolls report. Equities received an additional boost from tech giant Apple (AAPL) after the company reported better-than-expected quarterly results and announced a record $110 billion buyback program.
The tech-heavy Nasdaq Composite (COMP:IND) rose by 1.95% to 16,150.12 points in morning trade, while the blue-chip Dow (DJI) climbed 1.19% to 38,680.56 points, and the benchmark S&P 500 (SP500) advanced 1.22% to 5,125.83 points.
Investors were pleasantly surprised by the nonfarm payrolls report, which revealed that only 175,000 jobs were added in April, significantly below the consensus estimate of 243,000. This deceleration from March’s figures was seen as a positive sign by investors, especially in light of recent data showing resilience in the labor market and sticky inflation.
“The soft-landing bulls will and should run with this report. Average hourly earnings over the last three months is 2.8%. Given the growth in labor productivity, the wage inflation figures are consistent with the Fed’s longer-run inflation objectives,” said Renaissance Macro Research.
Following the release of the jobs report, Treasury yields extended their losses as traders flocked to bonds. The 30-year yield (US30Y) was down 6 basis points to 4.67%, the 10-year yield (US10Y) was down 8 basis points to 4.51%, and the 2-year yield (US2Y) was down 9 basis points to 4.79%.
In addition to the nonfarm payrolls report, Apple’s strong performance also contributed to the market rally. The company reported better-than-feared results for the second quarter of 2024 and announced a record $110 billion share buyback program, which pleased investors.
Overall, the positive news from both the nonfarm payrolls report and Apple’s earnings helped drive the market higher on Friday, despite concerns about slowing economic activity in the services sector. Other active stocks, such as Amgen (AMGN), also saw significant gains, further boosting investor sentiment.
