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Stocks tied to the economic recovery rose after a stronger-than-expected jobs report on Friday, sending two key market averages to all-time highs.
The Dow Jones Industrials spiked 144.26 points to 35,208/51.08 to close the week at a record high. The Dow climbed on the week 164 points, or 0.47%.
The S&P 500 jumped 7.42 points to 4,436.52, for yet another all-time high, The broader index tallied 25 points, or 2.8%.
The NASDAQ lost 59.35 points to 14,835.76, but the tech-heavy index still managed to gain more than 35 points on the week, or 0.24%.
Bank shares led the gains post-jobs report as rates shot higher, increasing the companies’ profitability prospects. Shares of JPMorgan and Bank of America rose just shy of 3%, while Wells Fargo climbed about 3.8%. Shares of Goldman Sachs hit an all-time high, and regional bank stocks had their best day in nearly a month.
Industrials, retailers and energy stocks also gained as the jobs report soothed concerns about the economic comeback.
On the flip side, tech shares declined as the jump in rates caused investors to take profits in the names and move back into stocks that could benefit more from faster economic growth. Amazon and Apple dipped slightly, while Zoom Video fell more than 3%. Higher rates can expose tech stocks’ lofty valuations.
Defensive stocks, such as utilities and health care companies, also slumped after the report.
Friday’s jobs report showed that the U.S. economy added 943,000 jobs in July, according to the Labor Department. Economists expected the economy to have added 845,000 jobs last month, according to estimates from Dow Jones. The unemployment rate dropped to 5.4%, below the estimate of 5.7%.
Prices for 10-Year Treasurys fell hard, raising yields to 1.30% from Thursday’s 1.22%. Treasury prices and yields move in opposite directions.
Oil prices dropped 99 cents to $68.10 U.S. a barrel.
Gold prices slid $46.40 to $1,762.50 U.S. an ounce.
