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The S&P 500 rose on Friday as traders interpreted an unexpected loss of jobs in July as meaning the Federal Reserve won’t need to raise interest rates soon and can leave monetary policy on hold for now.
The Dow Jones Industrials remained afloat 82.72 points, to reach noon at 53,967.82.
The much-broader index advanced 46.12 points to 7,756.08.
The NASDAQ Composite sprang 328.78 points, or 1.2%, to 26,677.13
Stocks are headed for a second straight week of gains. The S&P 500 has risen more than 3% week to date, while the NASDAQ could post its best weekly performance since April with a rise of around 5%, thanks to a bounce-back in chip stocks.
July’s nonfarm payrolls report showed a drop of 23,000 jobs, while economists polled by Dow Jones had forecast a gain of 83,000. The unemployment rate fell to 4.1% as the labor force participation rate fell to its lowest level in more than five years. Economists had expected it to remain unchanged at 4.2%.
Cloudflare popped 6% after the cloud cybersecurity company issued a solid full-year and current-quarter outlook. Shares of Atlassian jumped 30% after the company’s fourth-quarter adjusted earnings and revenue surpassed expectations and issued upbeat guidance.
Airbnb shares also rallied 14% after the vacation rental company posted a beat on the top and bottom lines.
Oil prices, meanwhile, were little changed as investors awaited a potential deal from the U.S. and Iran to reopen the Strait of Hormuz.
Treasury Secretary Scott Bessent had told CNBC earlier in the week that the two sides could reach a deal soon.
Prices for the 10-year Treasury fell, raising yields to 4.66% from Thursday’s 4.67%. Treasury prices and yields move in opposite directions.
Oil prices improved 80 cents to $78.09 U.S. a barrel.
Gold prices hiked $109.50 to $4,409.10 U.S. an ounce.
