Technology stocks fuel market rally as jobs report underscores economy’s resilience
US stocks rose on Friday as investors continued to analyze strong technology earnings Burning Jobs Reportcausing Nvidia, Meta Platforms, and Microsoft shares to close at new highs.
The Dow Jones index rose 135 points, or 0.4%. The S&P 500 rose 1.1% to a record closing high. The Nasdaq Composite rose 1.7%. All three major indices ended the week higher.
American economy It added 353,000 jobs in January That topped economists’ expectations by 176,500 jobs last month, according to new data from the Bureau of Labor Statistics released Friday morning.
Treasury yields rose on Friday, as investors analyzed the report. The two-year bond yield rose to 4.37%, compared to 4.19% on Thursday, according to Tradeweb.
Some investors say the continued flexibility of the labor market confirms that lowering interest rates is not on the table in March. Federal Reserve Chairman Jerome Powell indicated this on Wednesday, after the central bank He kept interest rates steady at their highest level in 23 years.
“May 1 is clearly the first month the Fed will begin cutting key interest rates,” Louis Navellier, chairman of Navellier & Associates, wrote in a note on Friday. “Then we hope the Fed will make additional key cuts in Interest rates at its meetings in June, July and September.
Traders have a roughly 21% expectation of a rate cut in March, down from 46% last week, according to the CME FedWatch tool.
Technology stocks were the winners of Friday’s session, following strong earnings reports from Meta Platforms and Amazon the previous evening.
Meta Platforms shares jumped 20.3% to close at a record $474.99 after the company announced a dividend increase, its first-ever dividend and a $50 billion stock buyback.
Amazon shares rose 7.9% after the e-commerce giant reported strong earnings in the latest quarter.
Shares of other technology companies also rose. Nvidia shares rose nearly 5% to close at a record high of $661.57. Meta and Nvidia also hit all-time highs during the middle of the session.
Microsoft shares rose 1.8% to a new record closing level of $411.22.
Stock gains weren’t even across the market. The equal-weighted S&P 500, which gives each stock the same influence over its performance, fell 0.8% on Friday.
The Russell 2000 index, which measures the performance of small-cap stocks in the United States, fell 0.5%.
Next week, US Treasury Secretary Janet Yellen is scheduled to testify before the Senate Banking Committee, in the wake of last year’s regional banking crisis.
Investors will also be watching for any clues about the health of the US financial system, after a surprise $252 million loss in fourth-quarter earnings from New York Community Bank put the focus back on regional banks.
As stocks stabilize after the trading day, levels may change slightly.
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