170 Comments By Corrie Driebusch and Corrie Driebusch The Wall Street Journal Biography @cdriebusch [email protected] David Hodari David Hodari The Wall Street Journal Biography @davidhodari [email protected] Updated Jan. 4, 2019 6:11 p.m. ET
U.S. stocks bounced back from their worst two-day start to a year since 2000, soaring Friday after fresh signs of economic strength eased fears that slowing growth around the world could drag on the U.S. expansion.
The Dow Jones Industrial Average jumped nearly 750 points as better-than-expected hiring in December suggested a healthy labor market. Stocks rose further after Federal Reserve Chairman Jerome Powell said economic data suggest good momentum heading into the new year, but that the central bank is “prepared to adjust policy quickly and flexibly” if necessary.
The combination mitigated investors’ worries about an economic slowdown. Those fears sent waves of volatility sweeping through stock and bond markets in recent weeks and drove the Dow industrials and S&P 500 to their worst December since 1931.
Fed Chairman Pledges Patience in Turbulent Times Federal Reserve Chairman Jerome Powell said despite turbulence in the markets, the overall global economy looks promising and the Fed will exercise patience in 2019. He spoke Friday on a panel with former Fed leaders Ben Bernanke and Janet Yellen in Atlanta. Photo: AP
On Friday, the blue-chip index rose 746.94 points, or 3.3%, to 23433.16 and the S&P 500 added 84.05 points, or 3.4%, to 2531.94, with both indexes ending the week more than 1% higher. The Nasdaq Composite gained 275.35 points, or 4.3%, to