Stocks rose on Friday, paring losses for the week August jobs report Came as expected. The data eased fears that a warmer labor market would give the Federal Reserve room to be more aggressive with its rate hikes.
The Dow Jones industrial average rose 304 points, or 1%. The S&P 500 advanced 1.2% to climb above 4,000. The Nasdaq composite gained 1.3%.
Investors were comforted by the much-anticipated jobs report, which showed the economy It added 315,000 jobs per month, slightly less The Dow Jones estimate is 318,000. Steve Sosnick, chief strategist at Interactive Brokers, called it the “Goldilocks” report.
“Not too hot [basis points] Off the table,” he said. “A number within expectations doesn’t change anything. What we are seeing now is a relief rally.
The unemployment rate rose to 3.7%, two-tenths of a percentage point above expectations. The August report is particularly important because it is one of the last major economic reports the central bank will weigh before raising rates at its September meeting. This data point will help the Fed decide on a 75-basis-point hike.
The last major economic report for reference was the August CPI on September 13 and More likely to determine that How aggressive should the feds be?
The Dow and S&P 500 ended the day higher, snapping four straight days of losses in the session before the start of September. However, after a decline in the last days of August, the major averages are set for a third negative week in a row. The Dow and S&P are set to post weekly declines of more than 1.5%. The Nasdaq composite will fall 2.5% this week.
Dovish comments from Federal Reserve officials have weighed on stocks, signaling interest rate hikes are not likely to stop anytime soon. Now, traders are watching to see if stocks can retrace June’s lows, especially since September has historically been a bad month for the market.
Shares of retailer Lululemon rose nearly 10% Reports quarterly results that beat Wall Street’s expectations.
—CNBC’s Buddy Dome contributed reporting.