Stocks advanced on Friday after an expectation-defying jobs report gave investors confidence around the health of the economy.
The S&P 500 rose 0.9% to 5,751.07, while the Nasdaq Composite jumped 1.22% to 18,137.85. The Dow Jones Industrial Average added 341.16 points, or 0.81%, to notch an all-time closing high of 42,352.75.
Stocks rallied after data showed nonfarm payrolls grew by 254,000 jobs in September, far outpacing the forecasted gain of 150,000 from economists polled by Dow Jones. The unemployment rate ticked down to 4.1% despite expectations for it to hold steady at 4.2%.
“After a summer of weak labor data readings, this is a reassuring reading that the U.S. economy remains resilient, supported by a healthy labor market,” said Michelle Cluver, head of ETF model portfolios at Global X. “We remain in an environment where good economic news is good news for the equity market as it increases the potential for a soft landing.”
Tesla, Amazon and Netflix were among the megacap tech names climbing on Friday, which can help explain the Nasdaq’s outperformance. Financials were the top sector in the S&P 500 during the session, surging 1.6% and closing at a record. JPMorgan Chase and Wells Fargo jumped more than 3% each.
On the other end of the spectrum, small cap stocks also rallied, with the Russell 2000 up 1.5%.
Friday’s bounce erased losses seen in recent days. Mounting geopolitical tensions in the Middle East gave way to a shaky start in October for stocks, a turn after the market posted an unusually strong first nine months of the year.
The S&P 500 finished up 0.22% on the week, while the Dow inched higher by 0.09%. The Nasdaq added 0.1% for the week.
Crude oil prices rose again on Friday, bringing the week-to-date gain close to 9%. Oil has been pushed higher as a result of intensifying conflict in the Middle East after Iran launched a missile attack on Israel.
Energy stocks have jumped this week as oil rallied, with the S&P 500 sector up 7%. That marked the group’s best week since October 2022.
Lisa Kailai Han, CNBC
Lisa covers markets and investing for CNBC.com and CNBC Pro.
