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After Strong Jobs Report, 2 Record Closes



(Newser)

Wall Street ended the week with two record-high closes after a strong jobs report. The Dow rose 144 points to 35,208, while the S&P 500 eked out a 7-point gain to 4,436. Meanwhile, the tech-heavy Nasdaq fell 59 points to 14,835. Some of the sharpest action was in the bond market, where Treasury yields tend to move with expectations for the economy and for inflation, per the AP. The yield on the 10-year Treasury climbed to 1.29% from 1.21% late Thursday, clawing back all the losses it sustained over the last week. Yields jumped as economists said Friday’s encouraging jobs report will give the Federal Reserve another nudge to pare back its bond-buying program, which is trying to juice the economy by keeping longer-term rates low. Economists say an announcement by the Fed about a possible slowdown in purchases could come as soon as the end of the month.

“Now, growth looks like it’s on a pretty solid footing,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. The solid jobs report and expectations for a recovery in the labor market could nudge investors back toward companies that are poised to benefit from people going out and spending more, including airlines, retailers, restaurants, and other firms providing in-person services, Samana said. The better-than-expected data on the economy took momentum out of technology stocks, which have been some of Wall Street’s biggest winners since the pandemic. That’s why the Nasdaq struggled more than other indexes Friday. It’s also why the benchmark S&P 500 was making only listless moves, even though three out of five stocks within the index were rising.

(Read more stock market stories.)

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