Investing.com – U.S. stocks rose sharply on Friday after the release of a better-than-expected jobs report, which reduced the likelihood of a recession in the world's largest economy.
At 09:40 ET (1340 GMT), the contract was up 275 points, or 0.7%, trading up 45 points, or 0.8%, and up 205 points, or 1.1%.
Despite these gains, the three major averages are on track to snap a three-week winning streak as the volatile situation in the Middle East has weighed on risk sentiment.
Non-farm payrolls impress
U.S. job growth was much stronger than expected in September, with jobs rising by 254,000 last month, up from an upwardly revised mark of 159,000 in August. Economists had forecast a reading of 147,000.
It also slowed to 4.1% from 4.2% the previous month.
While this healthy jobs data potentially reduces the chances of another huge interest rate cut by the Federal Reserve in its final two meetings of the year, Fed Chair Jerome Powell had already moved toward deeper cuts. traditional 25 basis points in a speech earlier this week.
“US economic data has been fairly healthy over the last couple of weeks, with this spectacular jobs report following strong ISM services, subdued weekly claims and favorable GDP/GDI revisions,” Vital Knowledge analysts said. , in a note.
“It seems very likely that the Fed will slow the pace of easing to 25 basis points in November, but stocks shouldn't care given that rate cuts are still happening (funds rate should still be around ~3-3.25 % by autumn 2025), while “The growth context appears much healthier than previously anticipated.”
Spiritual airlines collapses
In the corporate sector, shares of Spirit Airlines (NYSE:) fell 33% after Bloomberg reported that the airline's attempts to restructure its debt and avoid filing for bankruptcy have hit a roadblock after talks with bondholders will not be able to reach an agreement.
Rivian Automotive (NASDAQ shares fell 4% after the electric vehicle maker lowered its full-year production forecast and delivered fewer vehicles in the third quarter than expected, as the startup grappled with a shortage of parts.
Elsewhere, the American dockworkers' strike looks set to end after their union and the group representing big shipping companies reached a deal, which is expected to result in a pay rise of about 62% in six years.
Crude oil on track for strong weekly gains
Oil prices rose on Friday, on track for their biggest weekly gain in more than a year on the heightened risk of a growing conflict in the Middle East.
At 09:40 ET, the Brent contract gained 0.5% to $78.00 per barrel, while WTI futures were trading 0.4% higher at $74.03 per barrel.
Futures were expected to gain about 9% for the week, their steepest level since February 2023, while the 9% weekly rise in U.S. crude futures would be the biggest since March of last year.
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