U.S. stocks soared on Friday, boosted by strong earnings from Apple (AAPL) and a weaker-than-expected jobs report reigniting expectations that the Federal Reserve could cut interest rates sooner than expected. did.
The Dow Jones Industrial Average (^DJI) rose 1% (about 400 points) and the S&P 500 (^GSPC) rose 1.1%. The tech-heavy Nasdaq Composite Index (^IXIC) rose 1.8%. All three indicators are poised to grow based on the strong closing price gains from Thursday.
April’s jobs report highlighted a cooling U.S. labor market as employers added 175,000 jobs and the unemployment rate unexpectedly rose to 3.9%. Economists had expected employment to rise by 240,000.
The report raised expectations that the Fed would cut interest rates sooner than expected.according to Go to CME FedWatch Tooltraders see a roughly 50-50 chance of a rate cut at the July meeting, up sharply from Thursday.
read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards
Meanwhile, Apple was the corporate star on Friday, surprising investors with better-than-expected quarterly profits and better-than-expected revenue from China in the face of reports of weak iPhone sales.
While CEO Tim Cook talked about Apple’s AI development plans (a key focus this fiscal year), the company’s $110 billion stock buyback plan, the largest in U.S. history, captured the market’s attention. Apple shares rose 6% in early trading, pushing the Dow higher.
Blue-chip indexes have also boosted major Amgen (AMGN), with its stock price rising following comments from the company’s CEO that suggested the company’s obesity treatment could challenge market leader Novo Nordisk (NVO). has soared nearly 13%.
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