US stocks eye fresh record highs as upbeat jobs report boosts economic optimism
- US stocks jumped Friday as an upbeat jobs report boosted economic optimism.
- The economy added 531,000 jobs to nonfarm payrolls in October, beating the median forecast for a gain of 450,000.
- October marked the strongest month of job creation since July and follows two consecutive months of disappointing gains.
US stocks signaled new record highs Friday as an upbeat jobs report boosted economic optimism in the country.
The benchmark S&P 500, which closed at a record high for the 63rd time in the previous session on Thursday, added to gains after the strong payroll data came out. The tech-heavy
Here's where US indexes stood at the 9:30 a.m. ET open on Friday:
- S&P 500: 4,705.90, up 0.55%
- Dow Jones Industrial Average: 36,305.46, up 0.57%
- Nasdaq Composite: 16,019.02, up 0.49%
It also showed job creation rebounding from September's pace, which was revised to 312,000 from 194,000 payrolls.
The print, which came as the Delta wave eased further, marks the strongest month of job creation since July and follows two consecutive months of disappointing gains.
Equities have, thus far, been boosted by strong third-quarter earnings despite ongoing supply-chain disruptions and the persistent labor shortages.
The Federal Reserve's pledge for "patience" in raising interest rates on Wednesday has also set the stage for a robust stock market performance.
"The strong October jobs report confirmed the Federal Reserve's decision this week to begin tapering its monthly asset purchases, as it's become clear that the economy isn't in need of such massive support from the central bank," Jay Pestrichelli, CEO of ZEGA Financial, a Florida-based investment firm, said in a note.
He did say Friday's jobs report will not "likely to mean much for the stock market" given that it's a lagging economic data point. Instead, the market would be more focused on corporate earnings and a continued reopening of the economy, he said.
About half of third-quarter earnings have already been reported, showing a 42% increase in year-on-year EBITDA growth and a 17% rise quarter-on-quarter, Bank of America said Friday.
The yield on 10-year Treasury notes rose to 1.526% Friday from Thursday's 1.524%. Yields move inversely to bonds.
Meanwhile, oil prices rose after the Organization of the Petroleum Exporting Countries and its partners agreed to increase joint production by 400,000 barrels a day, as had been planned, shunning pressure from President Joe Biden for a more rapid increase.
Gold traded flat to $1,791.43 per ounce.
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