The S&P 500 increased for the week, ending a four-week losing trend, and the Nasdaq had its highest daily percentage gains since late August.
The S&P 500 sector with the biggest gain was information technology, followed by communication services.
After the jobs report, which revealed that U.S. employment increased for the first time in eight months in September, stocks initially declined, but by late morning they had started to recover.
Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut, said, “You have an economy that’s slowing but not faltering, and you have a Federal Reserve on the sidelines.”
He added that the S&P 500 seems to rebound after getting close to its 200-day moving average, which is currently located at about 4,208.
Following a recent spike in long-term U.S. Treasury yields, market observers have been debating whether the Fed may have reached the end of rate hikes. On Friday, benchmark 10-year U.S. Treasury rates reached 16-year highs.
The day’s report also revealed moderate wage growth, which may have been caused by the fact that the majority of the new jobs gained last month were in lower-paying sectors of the economy.
The S&P 500 increased by 50.31 points, or 1.18%, to 4,308.5, the Dow Jones Industrial Average increased by 288.01 points, or 0.87%, to 33,407.58, and the Nasdaq Composite increased by 211.51 points, or 1.6%, to 13,431.34.
The S&P 500 gained 0.5% for the week, while the Dow dropped 0.3% and the Nasdaq increased 1.6%.
The recent advances come after the stock market suffered severe losses in both September and the third quarter.
Investors are anticipating the release next week of statistics on producer pricing index readings and consumer price inflation for September.
Investors are eagerly anticipating the approaching quarterly earnings season since several big banks, including JPMorgan Chase (JPM.N), will report results the following week.
Exxon Mobil’s stock fell 1.7% after Reuters was informed by sources that the American oil company was advanced negotiations to buy Pioneer Natural Resources. The price of Pioneer rose 10.4%.
10.58 billion shares were traded on U.S. exchanges, which is lower than the 10.72 billion average for the entire session for the previous 20 trading days.
On the NYSE, advancers outweighed decliners by a ratio of 1.96 to 1; on the Nasdaq, advancers were in the lead by a ratio of 1.73 to 1.
The Nasdaq Composite registered 27 new highs and 260 new lows, while the S&P 500 posted six new 52-week highs and 52 new lows.