Extending the substantial recovery seen over the past few sessions, stocks moved sharply higher during the trading day on Friday. With the rally, the Dow reached its best closing level in a month after ending last Friday’s trading at a four-month closing low.
The major averages finished the day off their highs of the session but still firmly in positive territory. The Dow jumped 263.28 points or 1 percent to 25,983.94, the Nasdaq soared 126.55 points or 1.7 percent to 7,742.10 and the S&P 500 surged up 29.85 points or 1.1 percent to 2,873.34.
For the week, the Dow skyrocketed by 4.7 percent to record its best week since November, while the Nasdaq and the S&P 500 spiked by 3.9 percent and 4.4 percent, respectively.
The continued strength on Wall Street reflected optimism disappointing U.S. jobs data could spur the Federal Reserve to lower interest rates in the near future.
The Labor Department’s closely watched monthly jobs report released before the start of trading showed a substantial slowdown in the pace of U.S. job growth in the month of May.
The report said non-farm payroll employment rose by 75,000 jobs in May after soaring by a downwardly revised 224,000 jobs in April.
Economists had expected employment to increase by about 185,000 jobs compared to the jump of 263,000 jobs originally reported for the previous month.
Meanwhile, the unemployment rate came in at 3.6 percent in May, unchanged from the previous month and in line with economist estimates.
“The soft 75,000 gain in non-farm payrolls in May wasn’t quite as bad as the dismal ADP employment reading earlier this week but, along with the downward revisions to previous months, it is another sign that economic growth is slowing,” said Andrew Hunter, Senior U.S. Economist at Capital Economics.
He added, “On balance,