Softer Jobs Data Dampens Expectations for Fed Rate Hike
US stocks closed higher on Friday as softer-than-expected jobs data reduced expectations for an interest rate hike by the Federal Reserve. The Dow Jones Industrial Average rose by 250.40 points to 51,176.96, while the S&P 500 gained 56.27 points to 7,722.72 and the Nasdaq Composite added 319.27 points to 27,190.86.
The Labor Department reported that nonfarm payrolls increased by just 29,000 jobs last month, below the estimated 90,000. This led investors to scale back expectations for a rate hike at the Fed's upcoming policy meeting.
Rate-sensitive stocks such as real estate and small-cap indices performed well, with the S&P 500 real estate index rising by 0.4% and the Russell 2000 gaining 0.9%. Mega-cap stocks like Nvidia and Tesla also contributed to the advance, with Tesla's gains helping lift the S&P 500 consumer discretionary index by 1.4%.
Despite the gains, both the Dow and S&P 500 recorded a fourth weekly decline in five weeks, while the Nasdaq secured its fifth gain in six weeks.