Wall Street’s main indexes reversed course and rose on Friday following a boost from megacap stocks, with investors assessing a fresh jobs report that also pointed to slowing wage growth.
The Dow Jones Industrial Average nearly 250 points, or 0.7%, at 33,354, the Nasdaq climbed 1.2% and the S&P 500 was up 1%.
The S&P 500 is now set for its first weekly gain in five, while the Dow is still on track to decline for the third straight week.
The 10-year Treasury yield came off its fresh 16-year high hit after the data. Major growth stocks Microsoft, Meta Platforms, Alphabet and Nvidia rose about 2%.
Data showed US employment increased by the most in eight months in September as hiring rose broadly, pointing to persistent labor market strength, though wage growth is slowing.
“A steady slowing of wage growth momentum should also be a solace for Fed officials given that even with still above-trend job growth, wages are not seeing upward pressure,” strategists at TD Securities said.
Financial markets and most economists believe the Fed is probably done hiking interest rates because of a recent surge in long-term US Treasury yields.
Traders put the chance of interest rates remaining unchanged in November and December at around 73% and 58%, respectively, according to CME’s FedWatch tool.
Looking ahead, data would take center stage once again with September consumer price inflation and producer price index readings due next week.
“It’s really going to depend now on next week’s data because the Fed would be happy if inflation comes in modest and we still have the job growth,” said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest Wealth Management.
Focus will also be on the upcoming quarterly earnings season, with major banks including JPMorgan Chase, Wells Fargo, Citigroup and asset manager BlackRock reporting next week.
EV maker Tesla fell 1% after cutting prices of its Model 3 and Model Y vehicles in the United States.
Exxon Mobil lost 1.7% after sources told Reuters that the US oil producer was in advanced talks to acquire Pioneer Natural Resources. Pioneer’s stock jumped 10.8%.
Eli Lilly rose 3.1% after BofA Global Research hiked its price target on the drugmaker’s stock to $700.
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