Stocks rose on Friday, but all major averages headed for a week of losses as investors digested the October jobs report and what it means for the pace of future rate hikes. Federal Reserve
The Dow Jones Industrial Average added 200 points, or 0.6%. The S&P 500 and Nasdaq Composite advanced 0.6% and 0.3%, respectively.
A better-than-expected October nonfarm payrolls report on Friday further fueled some concerns that the Fed will persist with its tightening campaign. The report showed 261,000 payrolls added in October, beating a Dow Jones estimate of 205,000 additions. However, the unemployment rate stood at 3.7%, slightly above the expected 3.5%.
Some investors saw Friday’s jobs print as a mixed picture, given both the increase in the unemployment rate and the jobs added. But investors may be reading it positively because it signals a cooling job market without the economy collapsing, said Keith Lerner, chief market strategist at Truist Advisory Services.
“If it was all a broad force, I think it would be more concerning for the market,” he said. “Ironically, a mixed report is probably a good report for the market because it shows that the economy is not falling off a cliff.”
In other news, hopes of a reopening in China lifted U.S.-listed Chinese stocks on Friday, although the government has not formally announced a pivot. Shares of Pinduoduo, JD.com and Alibaba rose.
Investors also continued to assess the Fed’s latest 0.75 percentage point rate hike and when a pivot may come.
Despite Friday’s gains, all major averages are on track to end the week with losses, with the Dow down 2% to end four weeks of gains. The S&P and Nasdaq fell 4.1% and 6.6%, respectively, on the verge of snapping a two-week winning streak. The tech-heavy Nasdaq is also on course for its worst weekly performance since January 2022.
The corporate earnings season continued, with mobile payments firm Block surging 17% after beating expectations. Shares in Carvana fell 20% as it posted a wider-than-expected loss, while Twilio and Atlassian plummeted on disappointing guidance.
Friday’s moves follow another lackluster session for Wall Street. The Dow lost 0.5% on Thursday, while the S&P 500 fell 1%. The Nasdaq, meanwhile, fell 1.7%.