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NEW YORK (Reuters) – The Dow closed at a record high on Friday and the Nasdaq fell 1% as a better-than-expected jobs report reassured investors who had worried the economy was too weak. It ended with a rise exceeding .
According to the report, U.S. payrolls growth in September was the largest in six months, and the unemployment rate fell to 4.1%.
Peter Cardillo, chief market economist at Spartan Capital Securities in New York, said the statistics “basically indicate that economic activity in the fourth quarter is likely to continue at a solid pace.” said.
“This is a nice surprise, but I also think the pace of rate cuts could slow down.”
Traders further pared back bets on a 50 basis point cut by the Federal Reserve on November 6-7. Traders are currently pricing in just an 8% chance of a 50 basis point cut, down from about 31% early Friday, according to CME Group’s FedWatch tool.
The Fed began its monetary easing cycle last month with a 50 basis point rate cut.
Small-cap stocks and financial stocks outperformed, with the Russell 2000 up 1.5% and the S&P 500 Financials up 1.6%.
Spirit Airlines stock fell 24.6% after reports that Spirit was in talks with bondholders about a possible bankruptcy filing, while other airlines rose. Frontier Group jumped 16.4%, United Airlines rose 6.5% and Delta Air Lines rose 3.8%.
The Dow Jones Industrial Average rose 341.16 points, or 0.81%, to 42,352.75, the S&P 500 rose 51.13 points, or 0.90%, to 5,751.07, and the Nasdaq Composite Index rose 219.37 points, or 1.22%, to 18,137.85.
The index rose only slightly this week amid concerns about escalating tensions in the Middle East. The Dow rose 0.1%, the S&P 500 rose 0.2% and the Nasdaq rose 0.1%.
The S&P Energy Index rose 1.1% on the day due to the rise in crude oil prices. The index rose 7% for the week on concerns about the Middle East, its biggest weekly gain since October 2022.
US President Joe Biden says if he were in Israel’s shoes, he would consider alternatives to attacking Iranian oil fields, adding that he believes the jury is still out on how Israel will respond to this week’s Iranian missile attack. Ta.
Rivian shares fell 3.2% after the electric vehicle startup cut its full-year production forecast and delivered fewer vehicles than expected in the third quarter.
Third-quarter earnings reports for S&P 500 companies are scheduled to begin unofficially next week. Major financial companies are focused on next week’s reports, with JPMorgan Chase, Wells Fargo and BlackRock set to be released on October 11th.
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Bullish investors are hoping that increasingly high stock market valuations will be justified. The S&P 500 index is up 20.6% since the beginning of the year.
Ports on the U.S. East Coast and Gulf Coast have reopened, but it will take time to clear the backlog of cargo.
On the New York Stock Exchange, advancing issues outnumbered declining issues by a 1.72-to-1 ratio. On the Nasdaq market, a 2.20-to-1 ratio favored advancers.
The S&P 500 posted 33 new 52-week highs and one new low. The Nasdaq Composite recorded 98 new highs and 91 new lows.
Volume on U.S. exchanges was 10.91 billion shares, with an average of 12.03 billion shares over the past 20 trading days.
(Additional reporting by Johann M Cherian and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and David Gregorio)
