Dow closes at record high after job numbers explode

Stocks rose on Friday after a defying jobs report gave investors confidence in the health of the economy.

The S&P 500 rose 0.9% to 5,751.07, while the Nasdaq Composite rose 1.22% to 18,137.85. The Dow Jones Industrial Average gained 341.16 points, or 0.81%, to reach an all-time closing high of 42,352.75.

Stocks rallied after data showed that nonfarm payrolls rose by 254,000 jobs in September, far exceeding the 150,000 gain forecast by economists surveyed by Dow Jones. The unemployment rate fell to 4.1%, although it was expected to remain stable at 4.2%.

“After a summer of weak labor market data, this is a reassuring result that the U.S. economy remains resilient and supported by a healthy labor market,” said Michelle Cluver, head of ETF model portfolios at Global X. “We continue to be in one Environment in which Good economic news is good news for the stock market as it increases the potential for a soft landing.”

Tesla, Amazon and Netflix were among the megacap tech names that rose on Friday, which could explain the Nasdaq’s outperformance. Financials were the top sector in the S&P 500 during the session, rising 1.6% and closing at a record level. JPMorgan Chase and Wells Fargo each rose more than 3%.

At the other end of the spectrum, small-cap stocks also rallied, with the Russell 2000 gaining 1.5%.

Friday’s rebound erased the losses of recent days. Rising geopolitical tensions in the Middle East caused stock markets to get off to a shaky start in October, a reversal after the market was unusually strong in the first nine months of the year.

The S&P 500 ended the week up 0.22%, while the Dow gained 0.09%. The Nasdaq gained 0.1% for the week.

Crude oil prices rose again on Friday, bringing the week-to-date gain to almost 9%. Oil prices rose due to the worsening conflict in the Middle East after Iran launched a missile attack on Israel.

Energy stocks have surged this week on the back of oil’s rally, with the S&P 500 sector gaining 7%. This was the group’s best week since October 2022.