Stocks Climb After Jobs Report

Rally wipes out the week's losses
By Newser Editors and Wire Services
Posted May 3, 2024 3:55 PM CDT
Stocks Climb After Jobs Report
Traders work on the floor at the New York Stock Exchange in New York on Wednesday.   (AP Photo/Seth Wenig)

Wall Street capped a choppy week of trading Friday with the best day for the stock market in over two months, as traders welcomed cooler-than-expected US employment data as a sign that inflationary pressures on the economy are easing.

  • The Dow rose 450.02 points, or 1.2%, to 38,675.68, per the AP.
  • The S&P 500 rose 63.59 points, or 1.3%, to 5,127.79, on its best day since late February, erasing its losses for the week.
  • The Nasdaq rose 315.37 points, or 2%, to 16,156.33, rising with strong gains by tech stocks.

The modest increase in hiring last month suggests the Federal Reserve's aggressive streak of rate hikes may be finally starting to take a bigger toll on the world's largest economy. That may reassure the Fed that inflation will ease further, which could move the central bank closer to lowering interest rates. Average hourly earnings, a key driver of inflation, also rose less than expected. "The demand for labor is slowing, which will eventually ease inflation pressures, giving the Fed some leeway to cut rates later this year," said Jeffrey Roach, chief economist for LPL Financial. "Slower payroll growth and fewer hours worked imply the economy is slowing at a measured pace. This jobs report is consistent with the soft landing narrative."

Friday's market rally was widespread, though technology stocks powered much of the gains. Apple jumped 6% after announcing a mammoth $110 billion stock buyback. The tech giant reported late Thursday its steepest quarterly decline in iPhone sales since the outset of the pandemic. Microsoft rose 2.2%, and Nvidia added 3.5%. Several companies notched gains after reporting strong quarterly results. Amgen climbed 11.8% after the biotechnology company gave investors an encouraging update on a potential obesity drug. Live Nation Entertainment added 7.2% after the ticket seller and concert promoter beat analysts' first-quarter revenue forecasts. Motorola Solutions closed 5.2% higher after the communications equipment maker raised its profit forecast for the year.

(More stock market stories.)

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