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Wall Street closed sharply higher on Friday, led by tech and energy stocks. Investors’ mood was upbeat on encouraging jobs data released on the day. All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 307.06 points, or 0.8%, to close at 38,904.04. Twenty-three components of the 30-stock index ended in positive territory, while seven ended in negative.
The tech-heavy Nasdaq Composite gained 199.44 points, or 1.2%, to close at 16,248.52.
The S&P 500 advanced 57.13 points, or 1.1%, to close at 5,204.34. All 11 broad sectors of the benchmark index closed in the green. The Industrials Select Sector SPDR (XLI), the Technology Select Sector SPDR (XLK) and the Energy Select Sector SPDR (XLE) increased 1.4%, 1.1% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 2% to 16.03. A total of 10.1 billion shares were traded on Friday, lower than the last 20-session average of 11.8 billion. Advancers outnumbered decliners by a 1.44-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered declining ones by a 1.13-to-1 ratio.
Jobs Report Sparks the Session’s Rally
Job growth in the United States came in way past expectations for March, while wages also increased, suggesting a solid first quarter for the labor market.
The Labor Department said on Friday that total nonfarm payroll employment rose by 303,000 in March, against a consensus of 195,000. This is way higher than the average monthly gain of 231,000 over the prior 12 months. The sectors where these job gains occurred were primarily health care, government and construction. The number for February was revised down to 270,000 from the previously reported 275,000.
The unemployment rate of 3.8% changed little in March. The unemployment rate has been constantly coming in the range of 3.7-3.9% since August 2023. The February number remained unrevised at 3.9%. The decline in the rate reflects a sharp rise in household employment.
Average hourly earnings increased 0.3% for March, in line with expectations. The number for February was revised up to an increase of 0.2% from the previously reported 0.1%. Average Workweek increased marginally to 34.4, with the February number remaining unrevised at 34.3.
In general, the jobs report painted the picture of a robust jobs market, with employers seemingly of the notion that the worst is behind us and the economy is moving in the right direction. However, one fallout may be that such a robust report would further delay rate cuts by the Fed, with the central bank not feeling the urge to intervene. On the day, though, all broad sectors made gains.
Per a report released by the Federal Reserve, consumer credit for February came in at $14.1 billion against a consensus of $12 billion for the period. The number for January was revised down to $17.7 billion from the previously reported $19.5 billion.
Weekly Roundup
Throughout the week, trade reeled under the apprehension of the Fed delaying the first rate cut, with signals coming in from various Fed officials that it might just do that. For the week, the Dow slid 2.3%, the S&P 500 fell 1% and the Nasdaq declined 0.8%
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Stock Market News for Apr 8, 2024
Wall Street closed sharply higher on Friday, led by tech and energy stocks. Investors’ mood was upbeat on encouraging jobs data released on the day. All three major stock indexes ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 307.06 points, or 0.8%, to close at 38,904.04. Twenty-three components of the 30-stock index ended in positive territory, while seven ended in negative.
The tech-heavy Nasdaq Composite gained 199.44 points, or 1.2%, to close at 16,248.52.
The S&P 500 advanced 57.13 points, or 1.1%, to close at 5,204.34. All 11 broad sectors of the benchmark index closed in the green. The Industrials Select Sector SPDR (XLI), the Technology Select Sector SPDR (XLK) and the Energy Select Sector SPDR (XLE) increased 1.4%, 1.1% and 1.1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 2% to 16.03. A total of 10.1 billion shares were traded on Friday, lower than the last 20-session average of 11.8 billion. Advancers outnumbered decliners by a 1.44-to-1 ratio on the NYSE. On the Nasdaq, advancing issues outnumbered declining ones by a 1.13-to-1 ratio.
Jobs Report Sparks the Session’s Rally
Job growth in the United States came in way past expectations for March, while wages also increased, suggesting a solid first quarter for the labor market.
The Labor Department said on Friday that total nonfarm payroll employment rose by 303,000 in March, against a consensus of 195,000. This is way higher than the average monthly gain of 231,000 over the prior 12 months. The sectors where these job gains occurred were primarily health care, government and construction. The number for February was revised down to 270,000 from the previously reported 275,000.
The unemployment rate of 3.8% changed little in March. The unemployment rate has been constantly coming in the range of 3.7-3.9% since August 2023. The February number remained unrevised at 3.9%. The decline in the rate reflects a sharp rise in household employment.
Average hourly earnings increased 0.3% for March, in line with expectations. The number for February was revised up to an increase of 0.2% from the previously reported 0.1%. Average Workweek increased marginally to 34.4, with the February number remaining unrevised at 34.3.
In general, the jobs report painted the picture of a robust jobs market, with employers seemingly of the notion that the worst is behind us and the economy is moving in the right direction. However, one fallout may be that such a robust report would further delay rate cuts by the Fed, with the central bank not feeling the urge to intervene. On the day, though, all broad sectors made gains.
Consequently, shares of Meta Platforms, Inc. (META - Free Report) and Exxon Mobil Corporation (XOM - Free Report) gained 3.2% and 1.4%, respectively. Meta currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Per a report released by the Federal Reserve, consumer credit for February came in at $14.1 billion against a consensus of $12 billion for the period. The number for January was revised down to $17.7 billion from the previously reported $19.5 billion.
Weekly Roundup
Throughout the week, trade reeled under the apprehension of the Fed delaying the first rate cut, with signals coming in from various Fed officials that it might just do that. For the week, the Dow slid 2.3%, the S&P 500 fell 1% and the Nasdaq declined 0.8%