U.S. stocks soar after strong jobs data
Oct 05, 2024
New York [US], October 5: U.S. stocks ended higher on Friday, as new data eased concerns about a weakening jobs market.
The Dow Jones Industrial Average rose 341.16 points, or 0.81 percent, to 42,352.75. The S&P 500 added 51.13 points, or 0.90 percent, to 5,751.07. The Nasdaq Composite Index increased 219.37 points, or 1.22 percent, to 18,137.85.
Nine of the 11 primary S&P 500 sectors ended in green, with financials and consumer discretionary leading the gainers by adding 1.64 percent and 1.62 percent, respectively. Meanwhile, real estate and utilities led the laggards by losing 0.65 percent and 0.17 percent, respectively.
According to the U.S. Labor Department, job growth accelerated in September, with nonfarm payrolls increasing by 254,000 -- the highest since March -- and unemployment dropping to 4.1 percent.
Chicago Fed President Austan Goolsbee said that the report doesn't change the outlook that rates could be reduced significantly over the next 18 months.
However, former Treasury Secretary Lawrence Summers took a more cautious stance, stating that the Fed's surprise half-point rate cut last month was a mistake in hindsight. He emphasized that while interest rates are not yet constraining growth, future cuts should be made carefully.
Jeffrey Roach, chief economist at LPL Financial, doesn't agree. He said that "this solid report increases the odds that the economy will continue to grow above trend in the next quarter. Our base case is that the Fed will cut by a quarter point at the next few meetings."
Friday's market rebound helped offset recent losses, with Tesla, Amazon and Netflix leading gains among megacap tech stocks, contributing to the Nasdaq's outperformance. Financials also shined as the top-performing sector in the S&P 500, while major banks like JPMorgan Chase and Wells Fargo surged over 3 percent, driving the sector's strong performance.
Source: Xinhua
