The S&P 500 climbed on Friday, buoyed by a surprising jobs report that boosted investor confidence in the economy’s health.
The broad index increased by 0.5%, while the Nasdaq Composite surged 0.9%. Meanwhile, the Dow Jones Industrial Average gained 170 points, or 0.4%.
Non-farm payroll data impresses market
The US Bureau of Labor Statistics data showed that the country added 254,000 new jobs in September, which was significantly higher than the 140,000 anticipated by economists.
Additionally, the unemployment rate in the US fell to 4.1% in September from 4.2% in the previous month. It was also higher than economists’ expectations of 4.2%.
Reuters quoted analysts at Vital Knowledge in a report.:
It seems very likely the Fed will slow the pace of easing to 25bp in Nov, but stocks shouldn’t mind given rate cuts are still happening (the Funds Rate should still be around ~3-3.25% by the fall of 2025) while the growth backdrop seems much healthier than previously anticipated.
Tesla, Amazon, and Netflix gain
Tesla, Amazon, and Netflix were among the megacap tech names climbing on Friday, which can partially explain the Nasdaq’s outperformance.
Shares of Netflix rose 0.9% to $712.83, while Tesla’s stock gained 2% to $245.49 on Friday.
Additionally, shares of Amazon rose 1.2% from the previous close.
Energy stocks in the S&P 500 were headed for their best performance since 2022.
The sector has been one of the best performers in the S&P 500 this week. This is primarily down to higher crude oil prices due to escalating tensions in the Middle East.
Shares of Crescent Energy Company jumped nearly 3% on Friday, while those of Exxon Mobil Corporation rose 1.4% from the previous close.
The stock of Diamondback Energy Inc. surged by 2.8% on Friday as well.
Spirit Airlines slump
In the corporate sector, the stock of Spirit Airlines stock slumped 33% earlier in the session after Bloomberg reported the carrier’s attempts to restructure its debt and avoid filing for bankruptcy have hit a snag after talks with bondholders failed to result in a deal.
Rivian Automotive stock fell 4% after the EV manufacturer slashed its full-year production forecast, Reuters said in a report.
Rivian also delivered fewer vehicles in the third quarter than expected, as the startup grappled with a parts shortage, according to Reuters.
Oil prices are set to end the week at a significant high after Iran fired ballistic missiles toward Israel, escalating the turmoil in the region.
Brent oil prices have risen $8 per barrel since Tuesday, while West Texas Intermediate prices have increased nearly $7 per barrel.
According to Reuters, oil prices were on course for their largest weekly gain in over a year.
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