Stocks surged on Friday as Wall Street reacted positively to a strong U.S. jobs report, with the S&P 500 rising 1.1% and the Dow Jones Industrial Average climbing 0.8%. The Nasdaq composite also saw gains of 1.2%, with technology companies leading the rally.
The robust job market, which saw 303,000 workers added to payrolls in March, has fueled consumer spending and earnings growth, contributing to overall economic strength. Despite concerns about inflation creeping higher, the modest 0.3% increase in wages for the month alleviated some of those worries.
The bond market also saw movement, with Treasury yields rising following the jobs report. The stock market, however, seemed to view the strong jobs report as positive news, with consumer spending and corporate profits remaining key factors for investors.
The Federal Reserve’s benchmark interest rate, at its highest level in two decades, has been a result of historic rate hikes aimed at controlling inflation. While inflation has fallen from its peak in 2022, concerns remain about keeping it below 3% and heading towards the Fed’s target rate of 2%.
Investors will be closely watching for updates on inflation next week when the government releases its March report on consumer prices. Despite some uncertainty, the market is leaning towards the Fed trimming rates at its June meeting.
Overall, the S&P 500 rose to 5,204.34, the Dow added points to 38,904.04, and the Nasdaq gained points to 16,248.52. The market is gearing up for a busy period of corporate earnings in the coming weeks, with some notable moves from companies like Johnson & Johnson and Apple.
In energy markets, the price of U.S. crude oil settled higher, reflecting ongoing robust demand. While markets in Europe and Asia saw declines, Wall Street remained optimistic about the economic outlook.
With contributions from AP Business Writers Yuri Kageyama and Matt Ott, the market’s response to the strong jobs report sets the stage for continued volatility and potential rate cuts by the Federal Reserve in the coming months.
