In a major boost to investor sentiment, futures tied to the Dow Jones Industrial Average surged by 264 points, or 0.6%, early Friday. The S&P 500 futures and Nasdaq 100 futures also saw substantial gains, climbing 0.9% and 1.2%, respectively.
The positive movement in stock futures follows a robust jobs report. The U.S. economy added 254,000 nonfarm payroll jobs in September, significantly surpassing the forecasted gain of 150,000 jobs45. This unexpected growth highlights the labor market’s resilience despite ongoing economic uncertainties.
Moreover, the unemployment rate peaked at 4.1%, defying expectations that it would remain steady at 4.2%. This decrease in unemployment further underscores the strength of the job market and provides a positive outlook for economic stability.
The U.S. added 254,000 jobs in September, soaring past the Dow Jones estimate of 150,000 and accelerating from an upwardly revised 159,000 in August. The unemployment rate dropped to 4.1%, a level last seen in June. Needless to say, this is not a recessionary number at all. The…
— TradeOutLoud (@TradeOutLoud) October 4, 2024
“After a summer of weak labor data readings, this is a reassuring reading that the U.S. economy remains resilient, supported by a healthy labor market,” said Michelle Cluver, head of ETF model portfolios at Global X. “We remain in an environment where good economic news is good news for the equity market as it increases the potential for a soft landing.”
With Friday’s gains, major averages are poised to recover some of this week’s losses. The S&P 500 and the Dow are both down 0.7% week-to-date, while the Nasdaq is on track for a 1.1% loss over the same period, reported CNBC.com.
Crude oil prices surged again on Friday, pushing the week-to-date gain close to 9%. This increase is largely driven by escalating conflict in the Middle East following Iran’s missile attack on Israel.
Energy prices have experienced a significant uptick this week, with the S&P 500 energy sector rising by 5.9%. This marks the sector’s largest weekly gain in over a year, fueled by the rally in oil prices.
Related Stories:
US Jobless Claims Fall to 242,000, Biggest Drop Since 2021
A New Era for Bitcoin: SEC Approves First Leveraged Crypto Futures ETF
What to expect from ES futures
Oil Prices Jump After Saudi Announces Output Cuts As Asian Shares Rise
Sensex Plummets by 870 Points: 3 Reasons Why Stock Exchange Slipped to 81,625
November US Job Surge: 199K Added, Unemployment Falls – Exiting 2023 Recession-Free
US recovers 18 million jobs lost since Feb. 2020, but inflation jump
Wall Street Extends Rough Ride as Dow Plunges 500 Points Before Jobs Data
Leave a Reply