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US stocks soared on Friday, with the Nasdaq 100 closing higher by about 1% for the week.
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Solid earnings results and a weaker-than-expected April jobs report helped push stock prices higher.
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“The case for rate cuts got a little stronger today. Goldilocks could be making a comeback,” TradeStation’s David Russell said.
US stocks surged on Friday after a solid Apple earnings report and a weaker-than-expected April jobs report, which increased the chances of an interest rate cut from the Federal Reserve later this year.
The US economy added 175,000 jobs in April, well below economists’ forecast of 238,000 jobs and far short of the 303,000 added in March. Meanwhile, the unemployment rate ticked higher, to 3.9% from 3.8%. The jobs report also showed the slowest year-over-year wage growth since June 2021.
“Worries about wage pressures have dragged on the market recently and today’s number relieves some of those fears. The first quarter had several difficult numbers on the inflation front but the second quarter might be starting on a cooler footing. The case for rate cuts got a little stronger today. 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 in speeding up the timing of rate cuts, and bond yields fell significantly with that sentiment in mind. The 10-year Treasury note dropped 8 basis points to 4.50%.
Also helping boost stocks Friday was Apple, which surged about 7% after it reported a better-than-feared second-quarter earnings report. The iPhone maker also launched a historic $110 billion stock-buyback program and increased its quarterly dividend by 4%, which was cheered by investors.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:
Here’s what else happened today:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil dropped 1.15% to $78.04 a barrel. Brent crude, the international benchmark, declined 0.98% to $82.85 a barrel.
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Gold edged lower by 0.13% to $2,306.60 an ounce.
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The 10-year Treasury yield fell 8 basis points to 4.50%.
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Bitcoin jumped 4.51% to $61,748.
Read the original article on Business Insider