Highlights
Stocks gained Friday as a weaker than expected US employment report suggested the Federal Reserve might not raise rates in October as feared. The Dow Jones industrial average firmed 0.5 percent, the broader S&P 500 gained 0.7 percent and the Nasdaq was up 1.2 percent. Despite the weak job data, bond yields rebounded from initial declines to end higher. The dollar and WTI crude futures declined slightly.
Oil prices gave the market a lift by dipping initially on news that G7 countries would release up to 100 million barrels of emergency stocks of oil and diesel fuel. But oil prices bounced up from the lows as the market tended to shrug off the government action on supplies. Bond market reaction to the employment report also faded as the market returned its focus to high inflation, which is the Fed’s primary concern rather than the job market, plus the ongoing worry over heavy borrowing.
Most big technology shares advanced including Tesla, which gained on surprisingly favorable sales, along with Spacex, up big on product news. Chipmakers outperformed as the AI trade continued. Other outperforming sectors included restaurant chains, cruise lines, road & rail and engineering & construction stocks.