Islamabad, Oct 5: The Dow Jones Industrial Average closed at a record high on Friday, gaining 341.16 points (0.81%) to reach 42,352.75, while the Nasdaq Composite also rose by 219.37 points (1.22%) to 18,137.85.
The S&P 500 climbed 51.13 points (0.90%) to 5,751.07. A stronger-than-expected September jobs report, which revealed the largest job gains in six months and a drop in the unemployment rate to 4.1%, reassured investors about the economy’s strength.
Peter Cardillo, Spartan Capital Securities’ chief market economist, noted that the report signaled solid economic activity for the fourth quarter, but it may also slow the Federal Reserve’s pace of rate cuts. Traders reduced their bets on a 50-basis-point rate cut at the Fed’s upcoming meeting, with the probability dropping from 31% to 8%.
Small caps and financial stocks performed well, with the Russell 2000 index up 1.5% and the S&P 500 financials index gaining 1.6%.
In the airline sector, Spirit Airlines shares plummeted 24.6% following potential bankruptcy discussions, while competitors like Frontier Group (up 16.4%) and United Airlines (up 6.5%) saw gains.
For the week, major indexes posted only slight gains due to concerns over tensions in the Middle East. The Dow was up 0.1%, the S&P 500 rose 0.2%, and the Nasdaq gained 0.1%.
The S&P energy index surged 7% over the week, driven by rising oil prices amid Middle East uncertainty.
As earnings season approaches, key financial firms such as JP Morgan Chase, Wells Fargo, and BlackRock are set to report results on October 11. Investors hope earnings will justify the market’s high valuations, as the S&P 500 is up 20.6% year-to-date.
Trading volume was lower than the 20-day average, with 10.91 billion shares traded on U.S. exchanges compared to the usual 12.03 billion.
