watch
now
Stocks
jumped
sharply
Friday
after
a
softer-than-expected
April
jobs
report
boosted
hopes
that
the
Federal
Reserve
could
start
cutting
interest
rates
soon.
The
Dow
Jones
Industrial
Average
gained
450.02
points,
or
1.18%,
to
settle
at
38,675.68.
The
S&P
500
surged
1.26%
to
finish
at
5,127.79
and
notch
its
best
day
since
February,
while
the
Nasdaq
Composite
rallied
1.99%
to
close
at
16,156.33.
All
the
averages
capped
off
a
winning
week.
The
Dow
and
Nasdaq
rose
1.14%
and
1.43%,
respectively,
while
the
S&P
500
added
0.55%.
Friday’s
nonfarm
payrolls
report
showed
175,000
jobs
gained
in
April,
below
the
240,000
jobs
expected
by
economists
surveyed
by
Dow
Jones.
The
unemployment
rate
edged
up
to
3.9%,
versus
3.8%
in
the
prior
month,
according
to
the
Bureau
of
Labor
Statistics.
Wage
figures
also
came
in
less
than
expected,
an
encouraging
sign
for
inflation.
“It’s
really
eased
investors’
fears
that
the
economy
may
be
overheating
or
reaccelerating,
and
it’s
reviving
hope
for
rate
cuts,”
said
John
Hancock
Investment
Management’s
co-chief
investment
strategist
Emily
Roland.
“That’s
why
rates
are
falling,
bonds
are
rallying
and
equity
markets
are
up.
Bad
news
for
the
jobs
market,
means
the
Fed
may
be
able
to
start
cutting
later
this
year.”
Following
April’s
weaker-than-expected
job
growth
and
moderating
wage
gains,
traders
are
pricing
in
a
second
rate
cut
by
the
end
of
the
year.
Fed
funds
futures
trading
data
suggests
a
nearly
50%
likelihood
of
a
a
25
basis
point
rate
cut
in
September,
according
to
the
CME
Group’s
FedWatch
tracker
of
futures
market
pricing.
Rates
also
dropped
following
the
labor
report,
with
the
10-year
Treasury
yield
briefly
falling
below
4.5%.
The
movement
benefited
rate-sensitive
megacap
technology
stocks,
with
Nvidia
and
Advanced
Micro
Devices
advancing
more
than
3%.
Microsoft
and
Meta
Platforms
gained
2%
each,
while
the
S&P’s
information
technology
sector
surged
3%.
Strong
quarterly
reports
from
major
Dow
components
also
contributed
to
Friday’s
rally.
Apple
advanced
nearly
6%
after
it
announced
a $110
billion
share
repurchase and
a
top
-and
bottom-line
beat.
Biotech
stock
Amgen
surged
nearly
12%
after
posting
better-than-expected
earnings
and
offering
a
positive
update
on
an
experimental
obesity
drug.
Shares
notched
their
best
day
since
2009.
