June 22, 2024

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U.S. Stocks Extend Rally Following Weaker Than Expected Jobs Data

2 min read

Capping off a strong week for the markets, stocks moved considerably higher during the trading session on Friday. The Dow and the S&P 500 closed higher for the fifth straight day, while the tech-heavy Nasdaq extended its winning streak to six sessions.

The major averages pulled back off their best levels going into the close but remained firmly positive. The Nasdaq surged 184.09 points or 1.4 percent to 13,478.28, the S&P 500 jumped 40.56 points or 0.9 percent to 4,358.34 and the Dow advanced 222.24 points or 0.7 percent to 34,061.32.

For the week, the Nasdaq skyrocketed by 6.6 percent, the S&P 500 soared by 5.9 percent and the Dow spiked by 5.1 percent.

The continued strength on Wall Street reflects a positive reaction to a Labor Department report showing U.S. employment rose by less than expected in the month of October.

The closely watched report said employment climbed by 150,000 jobs in October after jumping by a downwardly revised 297,000 jobs in September.

Economists had expected employment to increase by 180,000 jobs compared to the surge of 336,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate crept up to 3.9 percent in October from 3.8 percent in September. The unemployment rate was expected to remain unchanged.

The data has added to optimism the Federal Reserve is done raising interest rates after the central bank left rates unchanged for the third time in four meetings earlier this week.

Treasury yields are extending a recent slump following the release of the report, adding to the buying interest on Wall Street.

“Given that jobs growth is slowing and the unemployment rate is ticking up slightly, that is the kind of data that will keep the Fed on hold and both stock and bond prices should move higher (bond yields lower) in the absence of a more aggressive Fed,” said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.

A separate report released by the Institute for Supply…

2023-11-03 16:14:13

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