Stocks tied to the economic recovery rose after a stronger-than-expected jobs report on Friday, sending two key market averages to all-time highs.
The Dow Jones Industrials spiked 128.12 points to 35,192.37, and hit an intraday record high.
The S&P 500 jumped 3.36 points to 4,432.46, for its own intraday all-time high,
The NASDAQ lost 46.53 points to 14,848.58.
Friday’s jobs report showed that the U.S. economy added 943,000 jobs in July, according to the Labor Department. Economists expected the economy to have added 845,000 jobs last month, according to estimates from Dow Jones. The unemployment rate dropped to 5.4%, below the estimate of 5.7%.
Bank shares led the gains post-jobs report as rates shot higher, increasing their profitability prospects. JPMorgan, Bank of America and Wells Fargo all gained more than 1% in early trading. Industrials, retailers and energy stocks also gained as the jobs report soothed concerns about the economic comeback.
On the flip side, tech shares declined as the jump in rates caused investors to take profits in the names and move back into stocks that could benefit more from faster economic growth. Amazon, Apple and Salesforce were trading down slightly in early trading. Higher rates can also expose tech stock lofty valuations.
Defensive stocks, such as utilities and health care companies, also slumped after the report.
Prices for 10-Year Treasurys fell hard, raising yields to 1.29% from Thursday’s 1.22%. Treasury prices and yields move in opposite directions.
Oil prices added on four cents to $69.13 U.S. a barrel.
Gold prices slid $39.30 to $1,768.60 U.S. an ounce.