Wall Street witnessed a jubilant close on Friday as stocks surged following a robust jobs report, instilling fresh confidence in the economy. The Dow Jones Industrial Average soared by 307.06 points, representing a substantial gain of 0.80%, ultimately settling at 38,904.04. Likewise, the S&P 500 experienced a notable uptick, climbing by 57.13 points, or 1.11%, to reach 5,204.34, while the Nasdaq Composite surged by 199.44 points, marking an impressive 1.24% increase to close at 16,248.52.
The buoyant mood on Wall Street stemmed from a strong showing in the US labor market, with the latest data from the Labor Department exceeding expectations. Employers demonstrated robust hiring activity throughout March, coupled with consistent wage increases, painting a picture of a resilient economy as it concluded the first quarter.
Investors embraced the positive news, driving gains across major S&P 500 sectors, particularly in communication services, industrials, and technology.
Tom Plumb, president and portfolio manager at Plumb Funds, emphasized the significance of the report’s findings. He pointed out that the data showcased a resilient economy that isn’t necessarily inflationary. Plumb further underscored the importance of the report in allaying concerns about a looming recession, highlighting its impact on the Federal Reserve’s interest rate deliberations.
Despite the overall upward trajectory, indexes registered declines for the week, largely due to mixed economic signals. The Dow saw a decline of 2.3%, the S&P 500 retreated by 1%, and the Nasdaq edged down by 0.8%.
Market sentiment regarding interest rate cuts underwent a shift, with money markets now pricing in around two rate cuts this year, down from the three previously anticipated.
However, not all stocks mirrored the day’s exuberance. Tesla bucked the trend, witnessing a 3.6% decline following reports of the cancellation of its low-cost vehicle, intended to broaden its market reach.
On the brighter side, Krispy Kreme saw a 7.3% surge after receiving an upgrade from Piper Sandler analysts, who shifted their stance from “neutral” to “overweight.” Additionally, Shockwave Medical enjoyed a 2% increase following news of its acquisition by Johnson & Johnson for a staggering $12.5 billion.
Trading volume on US exchanges totaled 10.11 billion shares, slightly below the 11.76 billion average for the last 20 trading days. Advancing issues outnumbered declining ones on both the NYSE and Nasdaq exchanges, reflecting the overall positive sentiment.
The S&P 500 marked 20 new 52-week highs and 5 new lows, while the Nasdaq Composite recorded 67 new highs and 136 new lows, signaling a dynamic trading session with both highs and lows.