US Stocks Near Record High After Jobs Report Eases Inflation Worries

US stocks rose near their all-time high on Friday after the latest update on the US job market eased worries about inflation. The S&P 500 climbed 0.7% and pulled within 1% of its record set in August, while the Dow Jones Industrial Average added 250 points or 0.5%. The Nasdaq composite gained 1.2%, boosted by a solid US economy.

The Labor Department reported that employers across the country added 29,000 more jobs to their payrolls than they cut last month. While this was fewer than economists expected, it tempered concerns about inflation fueling higher interest rates. The Federal Reserve recently raised its main interest rate for the first time in three years to combat rising living costs.

Adam Schickling, senior economist at Vanguard, noted that 'the labor market has not deteriorated sharply, but there is also little evidence that it has meaningfully strengthened, giving policymakers reason to wait for additional data.'

The pullback in expectations for an October rate hike helped calm the bond market. The yield on the 10-year Treasury briefly dropped below 5.17%, down from its peak near 5.35% on Thursday.