Dow Towers Nearly 300 to End Turbulent Week - InvestingChannel

Dow Towers Nearly 300 to End Turbulent Week

Stocks rallied Friday even after the release of stronger-than-expected U.S. jobs data and a pop in Treasury yields.

The Dow Jones Industrials popped 288.01 points, to end the week at 33,407.58.

The S&P 500 index took on 50.31 points to 4,308.50.

The NASDAQ index jumped 211.51 points, or 1.6%, to 13,431.34.

The S&P 500 is up 0.48% week to date. This would break the broad market index’s four-week negative streak. The NASDAQ is up 1.6% for the week, while the Dow remains down 0.3%.

Technology shares led the S&P 500’s sector gains on Friday, gaining nearly 2%. Palo Alto Networks, Monolithic Power Systems and Advanced Micro Devices all jumped more than 4%.

GM and Ford rallied in the afternoon as the UAW said there would be no new strikes this week because of progress in talks with automakers. Shares of Ford took on 0.8% and General Motors gained 1.9%.

Traders were unclear of the reason for the intraday turnaround. Some noted it could be the softer wage number in the jobs report that made investors rethink their earlier bearish stance. Others noted the pullback in yields from the day’s highs. Part of the rally may just be to do a market that had gotten extremely oversold with the S&P 500 at one point this week down more than 8% from its high earlier this year.

The U.S. economy added 336,000 jobs in September, the Labor Department said. Economists polled by Dow Jones expected 170,000 jobs. To be sure, wages rose less than expected last month.

Friday’s jobs report raised concern among investors that the Federal Reserve will need to keep rates higher for longer to tame inflation.

All the major averages are headed toward a losing week. The S&P 500 is down 1.4% week to date. This marks the broad market index’s fifth consecutive week of losses, which would be its longest weekly slide since May 2022. The Dow is down 1.7%, while the NASDAQ is 0.9% lower for the week.

Prices for the 10-year Treasury tailed off, raising yields to 4.8% from Thursday’s 4.72%. Treasury prices and yields move in opposite directions.

Oil prices tacked on 46 cents to $82.77 U.S. a barrel.

Gold prices added $11.60 to $1,843.40.

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