Stocks climbed on Friday as investors welcomed a key monthly jobs report that showed hiring remains robust in the US economy. The Middle East crisis and a return to work at US ports also stayed in high focus.
The S&P 500 (^GSPC) put on 0.5%, while the Dow Jones Industrial Average (^DJI) added roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) moved 0.7% higher.
The September jobs report massively overshot expectations, as the US economy added 254,000 jobs last month and the unemployment rate dipped down to 4.1%. All together, the report showed the labor market remains robust, even amid signs it has cooled. Yahoo Finance’s Josh Schafer has more details on the report here.
The jobs report swung forecasts toward a smaller rate cut from the Federal Reserve next month. Over 90% of bets are on a 0.25% cut, as opposed to a larger, 0.50% cut, according to the CME FedWatch Tool.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Stocks are looking to recoup weekly losses, as the markets have shown some resilience in the face of a rough week of worrying headlines. The major gauges were off 1% or less as of Thursday’s close, with the S&P 500 and Dow still within striking distance of record highs.
In recent days, a huge ports strike, devastation from Hurricane Helene, and the prospect of a wider Mideast conflict brought the potential to lift prices and fan inflation.
In a welcome move, the US dockworkers strike ended after a tentative wage deal was agreed late Thursday, though some issues remain to be settled by later this year.
On the downside, a barrage of strikes by Israel on Beirut kept alive the Mideast worries that have driven up oil prices. Western leaders warned about “uncontrollable escalation” as investors waited to see whether Israel will attack Iran’s oil facilities — a move President Biden said is under discussion.
Oil is on track for its biggest weekly gain in two years as tensions mount. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures rose over 1% on Friday morning, coming off a 5% gain the previous day.
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