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US stocks surged on Friday following a stronger than expected March jobs report.
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The US economy added 303,000 jobs last month, well ahead of economist estimates of 212,000 jobs.
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The jobs report showed muted wage inflation, which could suggest a mild CPI report next week.
US stocks surged on Friday, recouping most of Thursday’s losses after the March jobs report bested analyst estimates.
The US economy added 303,000 jobs in March, well ahead of economist estimates of 212,000. Investors are electing to put a positive spin on the strong economic data under the idea that expansion will drive earnings growth. That optimism appeared to outweigh concerns that a Fed rate cut will be delayed.
The report also saw the unemployment rate fall to 3.8% from 3.9%, and it also showed easing wage inflation during the month. That’s important because wage inflation plays a key part in overall inflation, suggesting that next week’s CPI report might not surprise to the upside.
“Another blowout payroll report suggests the economy is running strong and far from recession, with the economy averaging 276,000 job growth per month over the last quarter,” Carson Group strategist Sonu Varghese told Business Insider. “On balance, this would push out any rate cuts by the Fed, but easing wage growth means we’re not in the middle of a labor-market induced inflation surge.”
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 edged higher by 0.20% to $86.76 a barrel. Brent crude, the international benchmark, jumped by 0.39% to $91.00 a barrel.
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Gold jumped 1.50% to $2,343.20 per ounce.
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The 10-year Treasury yield rose 7 basis points to 4.39%.
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Bitcoin dropped by 0.99% to $67,844.
Read the original article on Business Insider