-
U.S. stocks soared Friday, with the Nasdaq 100 closing up about 1% for the week.
-
Strong earnings results and a weaker-than-expected April jobs report helped push stock prices higher.
-
“The case for rate cuts got a little stronger today. Goldilocks could make a comeback,” said TradeStation’s David Russell.
U.S. stocks jumped Friday after a strong Apple earnings report and a weaker-than-expected April jobs report, raising chances of an interest rate cut from the Federal Reserve later this year.
THE The American economy created 175,000 jobs in April, well below economists’ forecasts of 238,000 jobs and well below the 303,000 created in March. At the same time, the unemployment rate increased from 3.8% to 3.9%. The jobs report also showed the slowest year-over-year wage growth since June 2021.
“Concerns about wage pressures have eased in the market recently and today’s numbers alleviate some of those fears. The first quarter saw several challenging numbers on the inflation front, but the second quarter could begin on calmer grounds. The case for rate cuts has gained momentum. “Goldilocks could be making a comeback,” TradeStation market strategist David Russell said in comments to Business Insider.
The light jobs report should ultimately give the Fed more flexibility to accelerate the timing of rate cuts, and bond yields have fallen significantly against this backdrop. The 10-year Treasury note fell 8 basis points to 4.50%.
Friday also helped boost stocks Applewhich jumped about 7% after it released a better-than-expected second-quarter earnings report. The iPhone maker also launched a historic $110 billion share buyback program and increased its quarterly dividend by 4%, which was welcomed by investors.
Here’s where the US indexes stood at the 4:00 p.m. closing bell on Friday:
Here’s what happened today:
In commodities, bonds and cryptocurrencies:
-
West Texas Intermediate Crude oil fell 1.15% to $78.04 a barrel. Brent crudethe international benchmark, fell 0.98% to 82.85 dollars per barrel.
-
Gold fell slightly by 0.13% to $2,306.60 an ounce.
-
The 10-year Treasury yield fell 8 basis points to 4.50%.
-
Bitcoin jumped 4.51% to $61,748.
Read the original article on Business Insider
