The three major stock indexes moved toward record highs Friday following a jobs report that far exceeded forecasters’ expectations and quieted earlier concerns the United States economy was headed for a recession.
The S&P 500 increased 1% to 3,066.91, and the tech-heavy Nasdaq gained 1.1% to 8,386.4, setting record closes. The Dow Jones Industrial Average ended up 301 points, or 1.11%, to close at 27,347.36.
The stock market’s rally comes after the Labor Department reported earlier Friday that the U.S. economy added 128,000 jobs in October. The unemployment rate ticked up slightly to 3.6%, though it hovered around a 50-year low.
The monthly labor report outperformed forecasts predicting 75,000 jobs were created last month and overcame the monthlong General Motors strike. The Labor Department reported the strike, which ended last week, caused employment in auto manufacturing to fall by nearly 42,000.
The week also brought the third interest rate cut from the Federal Reserve this year. The central bank said Wednesday it would lower rates by a quarter point, bringing the target for short-term borrowing to a range of 1.5% to 1.75%.
The lift on Wall Street, as well as the strong jobs gains, are likely to quell fears that arose this summer that the U.S. was sliding toward an economic downturn. Experts, however, say U.S. manufacturing is in a recession as it has taken a hit from the protracted trade war with China.
But trade tensions appear to be easing, as the U.S. and China reached a phase one deal last month. The details of the agreement, however, have yet to be released, and the deal remains unsigned.
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