Stocks recovered early Friday following the index's worst session in more than a year as traders assessed the Mac jobs report.
The S&P 500 rose 0.4%, while the Dow Jones Industrial Average rose 55 points, or 0.1%. The technology-enriched Nasdaq Composite rose 0.4%.
Job growth reached 303,000 in March, which was better than expectations, as the unemployment rate came in at 3.8% for the month, as expected. Nonfarm payrolls are expected to increase by 200,000, based on Dow Jones estimates. Wages increased 0.3% for the month and 4.1% from a year ago, both in line with budget.
Bond yields soared and share prices fell and rose after the report. Investors are torn between wanting a strong economy to support further corporate income growth and a weaker jobs market that would give the Federal Reserve the green light to start reducing benefit rates.
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“This report emphasizes the strengthening of the job market in the broader context of a U.S. economy that remains resilient to the impact of higher rates,” said Joe Gaffoglio, President of Mutual of America Capital Management.
The stock market recovered again this Friday after selling off on Wall Street during the trading session on Thursday. The Dow Jones dropped about 530 points, or 1.35%, marking its biggest daily decline since March 2023 and its fourth straight losing session. Stocks have been weak this week as rates trended higher.
The S&P 500 and Nasdaq Composite slumped as much as 1.23% and 1.4%, respectively. All three major stocks traded in the red earlier as crude oil prices soared and Minneapolis Fed President Neel Kashkari questioned whether profit rates should fall amid still-high inflation.
“In the short term, equities may be exposed to some asset accumulation after strong first-quarter returns,” said Terry Sandven, principal equity strategist at United States Bank Wealth Management. “Modest withdrawals will be in the normal flow and upward flow of the market.”
