S&P 500 rose on Friday as a surprise jobs report boosted confidence among investors in the health of the economy.
The Nasdaq Composite grew by 0.9%, while the broad index went up 0.5%. The Dow Jones Industrial Average rose 170 points or 0.4%.
Non-farm payroll data impresses market
US Bureau of Labor Statistics showed the US added 254,000 jobs in September. This was much higher than economists’ expectations of 140,000.
In addition, unemployment in the US dropped to 4,1% from 4,2% the month before. The rate was higher than the economist’s expectations, which were 4.2%.
Reuters cited Vital Knowledge analysts in a recent report. :
The Fed is likely to slow down the rate of easement in November, but the stock market shouldn’t be concerned as the rates are being cut (the Funds Ratio should remain around 3-3.25 by 2025), and the economic outlook seems better than expected.
Tesla, Amazon and Netflix Gain
Tesla, Amazon and Netflix are among the tech megacaps that have been climbing this Friday. This can explain Nasdaq’s performance.
Tesla stock rose 2% on Friday to $245.49, while Netflix shares gained 0.9%.
Amazon shares also rose by 1.2% since the last close.
The S&P 500 energy stocks are on track to achieve their highest performance since 2022.
This sector was one of the top performers on the S&P 500 last week. The main reason for this is the higher crude oil price due to escalating Middle East tensions.
The shares of Crescent Energy Company rose nearly 3% from their previous closing price, while Exxon Mobil Corporation’s stock rose by 1.4%.
Diamondback Energy Inc. stock also surged 2.8% Friday.
Spirit Airlines slump
Spirit Airlines’ stock fell 33% in corporate trading earlier this session, after Bloomberg reported that the airline had failed in its attempts to restructure debt in order to avoid bankruptcy. Talks with bondholders did not result in an agreement.
Reuters reported that Rivian Auto stock dropped 4% following the EV maker’s lowered production estimates for this year.
Reuters reports that Rivian delivered fewer cars than anticipated in its third quarter due to a shortage of parts.
The oil prices will end this week on a high note after Iran launched ballistic missiles at Israel and escalating tensions in the Middle East.
Since Tuesday, Brent oil has increased by $8 per barrel while West Texas Intermediate is up nearly $7.
According to Reuters the oil price was on track for its largest weekly increase in more than a year.
This article S&P 500 and Dow gain on US job report strength; Tesla, Amazon stock gains appeared first on The ICD
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