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Stocks – Market Sees Biggest Rally Since Early September

Published 10/04/2019, 03:52 PM
Updated 10/04/2019, 03:58 PM
© Reuters.

Investing.com – Stocks enjoyed their best day since early September Friday as Wall Street was cheered by a solid jobs report that saw the unemployment rate hit a milestone low.

The S&P 500 and the Dow Jones industrials jumped 1.42% each. The Nasdaq Composite and Nasdaq 100 indices added 1.4% and 1.5%, respectively.

The S&P 500's point gain was its best since Aug. 13. The gains for the Dow – about 372 points – and Nasdaq were their best since Sept. 5. The rally cut the Dow's and S&P 500's losses for the week to 0.9% and 0.3%, respectively. The Nasdaq finished up 0.5% for the week.

The market managed to weather selloffs on Tuesday and Wednesday that saw the Dow fall more than 838 points. From a low on Thursday as the market reacted to a weaker-than-expected report on the services report, the Dow gained more than 847 points at its Friday peak.

The rally was largely computer-driven: The uniformity of the gains and the speed with which they occurred was a clear signal of across-the-board blanket buying.

The rally was set off by the jobs report that showed payrolls increasing by 136,000 last month and the unemployment rate falling to 3.5%, the lowest in at least 50 years. Bullish as the report sounds, the employment gain was smaller than expected and wage growth fell back slightly.

Still, the jobs report was a big relief after early reports this past week suggested a stagnating economy getting close to a recession.

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The Dow was led by a 2.8% gain for Apple (NASDAQ:AAPL) and a 2.73% gain for pharmaceutical giant Merck (NYSE:MRK). Chemical maker Dow Inc. (NYSE:DOW) was the one decliner for most of the day but finally finished up slightly.

Among the Nasdaq 100 stocks, Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT), along with Google parent Alphabet (NASDAQ:GOOGL) and Amazon.com (NASDAQ:AMZN), contributed more than 47 points to the index's 116-point gain.

Interest rates fell even as stocks climbed, in part because Federal Reserve Chairman Jerome Powell said he is looking for ways to boost inflation. The 10-Year Treasury yield fell to 1.531% from Thursday's 1.536%.

Crude oil moved higher. West Texas Intermediate was up 36 cents to $52.81. Brent futures, the global benchmark, rose 66 cents to $58.37. They were off 5.5% and 4.4% respectively for the week.

Gold futures were down slightly at $1,512.90, but up 0.4% on the week.

Chip maker Skyworks Solutions (NASDAQ:SWKS), insurance giant Chubb (NYSE:CB), biotech company Thermo Fisher Scientific (NYSE:TMO) and ConAgra Foods (NYSE:CAG) were among the top S&P 500 performers.

Computer maker HP Inc. (NYSE:HPQ), oil-and-gas producer Apache (NYSE:APA), seed-producer Corteva Inc. (NYSE:CTVA) and beauty products retailer Ulta Beauty(NASDAQ:ULTA) were among the worst S&P 500 performers.

Latest comments

gold
am thinking bank earnings will be the real decider.
Never seen the Koch Group stooge so upset. Something must be wrong.
The most manipulated info is used as excuse for massive buybacks. This is not working anymore.
:) I get why you said that...I bet you listen to Peter schiff like I do
Market will bleed badly next week. Fake us index can't hold
Hi Faisal How do you support your statement please Thanks
But.. trade deal.... constructive talks..... or will Mnuchin send them home again? These are the days of our lives.
democrats will need painkillers...
So now good news is good news
Well after all we continue on the trading range where everything can happen, bouncing the ranges and powered by news, fake or not. About the jobs report I will wait for the adjustment next month, but a typical lagging indicator.
what adjustment do you expect?
as regards this job report, I need a lesson in spelling.....the spell check on this search engine is in need of an update.....no way this job report is from the "real world"
Pricing in next rate cut already begun, geez....
Where have the fears of a trade war gone ha ha
like china is gonna agree to anything now..theyre waiting for the dust to settle
someone short and got face ripped?
am still short.. big sell off coming.. short any rally
Yesterday rally on bad data. Today rally on “good” data. Market is just fake, goes just up whatever
are you surprised?nothing is left any more to chance... never was...
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