US Stocks Approach Record Levels Following Employment Data
An employment report that came in below expectations eased inflation concerns and led to gains on Wall Street.
Stocks approached all-time highs on Friday as the latest employment data released in the US eased concerns that the economy would overheat and lowered expectations for interest rate hikes.
General Rise in Indices
The S&P 500 index recorded a 0.7 percent increase, rising to within about 1 percent of its record level in August.
The Dow Jones Industrial Average gained 0.5 percent with a 250-point increase, while the Nasdaq composite index rose by 1.2 percent.
Effects of the Employment Report
According to government data, employers recorded a slowdown in hiring last month compared to the previous month, providing a net increase below expectations.
This released data largely alleviated concerns that the economy could stoke inflation.
Interest Rate Hike Expectations
Investors began to see the probability of the Federal Reserve raising its main interest rate at this month's meeting as much lower.
According to CME Group data, the probability of an interest rate hike, which was 64 percent a week ago, dropped below 23 percent following the new data.
Bond and Oil Markets
The decline in interest rate hike expectations brought calm to the bond market, while the 10-year Treasury yield briefly fell.
Brent crude lost 0.1 percent, trading at levels per barrel in the shadow of war uncertainties involving Iran.
Company-Specific Activity
Tesla shares gained 4.7 percent after releasing quarterly vehicle delivery figures that exceeded expectations.
Nvidia shares rose 1.3 percent, while Nike shares fell 3.6 percent due to weakening revenues.