Dow
soars 700 points after December Jobs and Services Activity Reports Boost Hopes
for Fed Rate Cuts
US stocks jumped Friday as
investors embraced the December jobs report and services-sector data as signs
the Federal Reserve could decide to start reducing interest rates after sharply
tightening them to battle high inflation.
The Labor
Department said average hourly earnings rose 0.3% last month, less than the
0.4% consensus estimate from a Bloomberg survey of economists. Headline hiring
of 223,000, however, was above the 200,000 consensus
estimate.
Meanwhile, the Institute for
Supply Management's services-sector report showed prices paid decelerated while
services activity shrank for the first time since May 2020.
"Investors appear to be in
the mood for seeing the best in any situation," said Chris Beauchamp,
chief market analyst at online trading platform IG, in a note. The
"general takeaway is weaker data will help to slow down the Fed earlier
than expected, or perhaps bring forward the first cut in US rates."
Here's where US indexes stood at the 4:00
p.m. closing bell on Friday:
·
S&P 500: 3,895.08, up 2.28%
·
Dow Jones Industrial Average: 33,630.61, up
2.13% (700.53 points)
·
Nasdaq Composite: 10,569.29, up
2.56%
The daily gains allowed the S&P 500
and the Nasdaq Composite to notch their first weekly advance after four weeks
of losses and after getting mauled by a bear market in 2022.
Still,
Beauchamp said, "US indices have rallied but have yet to break above
recent resistance, suggesting this bounce has yet to really develop the
necessary strength for a real rally."
Here's what
else is happening today:
·
The parent company of crypto lender Genesis
reportedly has closed its wealth management unit.
·
Billionaire investor Leon Cooperman sees just a 5%
chance the S&P 500 pares back the losses it's logged since March 2022.
·
WWE shares soared following a surprise comeback
announcement by former CEO Vince McMahon to the wrestling group.
In
commodities, bonds, and crypto: