Wall Street's primary stock indexes saw a huge surge following a robust jobs report, which hinted at a potential easing of wage pressures. This development enhances the prospects of a gentle landing for the U.S. economy.
In March, U.S. employers exceeded expectations by hiring a significant number of workers while maintaining a steady pace of wage increases. These positive indicators suggest that the economy concluded the first quarter on a stable footing, possibly postponing the anticipated interest rate cuts by the Federal Reserve.
At 11:39 a.m. ET, the Dow Jones Industrial Average surged 266.21 points, marking a 0.69 per cent increase to reach 38,863.19. Simultaneously, the S&P 500 rose by 51.35 points, reflecting a 1.00 per cent gain, and stood at 5,198.56. The Nasdaq Composite also experienced growth, climbing 193.14 points, or 1.20 per cent, to reach 16,242.23.
Ten out of the 11 primary S&P 500 sectors saw gains, with communication services leading the charge, up by 1.6 per cent.
Krispy Kreme rose by 4.7 per cent following an upgrade by Piper Sandler, shifting its rating from "neutral" to "overweight". Shockwave Medical also saw an uptick of 1.8% after Johnson & Johnson's announcement of its acquisition for $12.5 billion.
On the NYSE, advancing issues surpassed decliners with a ratio of 1.35-to-1, while on the Nasdaq, the ratio stood at 1.12-to-1. The S&P index marked 13 new 52-week highs and five new lows, whereas the Nasdaq noted 44 new highs and 102 new lows.
On Friday, Europe's primary stock index plunged to its lowest level in over two weeks. The STOXX 600, representing the entire continent, declined by 0.9 per cent, marking its most significant single-day decrease since early February. Throughout the week, the index experienced a notable 1.2 per cent decline, marking its most substantial weekly downturn since mid-January.
Benchmark indexes in key European economies, including Germany, France, Italy, and Spain, each saw declines of over 1 per cent.
In Asian stock markets, Japan’s Nikkei 225 fell 1.96 per cent at 38,992.08. Meanwhile, Hong Kong’s Hang Seng Index was down 0.1 per cent to 16,723.92.
Oil prices continued their upward trajectory on Friday, poised for a second consecutive weekly increase, propelled by escalating geopolitical tensions and persistent tightness in global crude inventories.
Brent crude climbed by 55 cents, marking a 0.61 per cent rise to reach $91.20 per barrel by 10:46 a.m. CDT. Meanwhile, U.S. West Texas Intermediate crude saw an uptick to $87.00 per barrel, up by 41 cents or 0.47 per cent.
Gold prices surged to reach a new peak, driven by various factors such as expectations of U.S. interest rate cuts, speculative trading, and continued central bank acquisitions, on Friday. Despite robust job growth in March, the momentum of gold's upward surge remained strong.
At 10:57 a.m. EDT (1456 GMT), spot gold rose by 1.3 per cent to $2,320.04 per ounce, hitting a fresh record of $2,324.79 earlier in the trading session. With a 3.8 per cent increase this week, bullion is poised for its third consecutive weekly advance.