S&P 500 hits record as strong jobs data eases recession fears
The S&P 500 closed at a record high on Friday after a stronger-than-expected April jobs report eased recession fears, with the index gaining 2.4% for the week.
The S&P 500 closed at a record high on Friday, buoyed by a stronger-than-expected April jobs report that eased fears of an imminent economic downturn. The index rose 0.8% on the day and 2.4% for the week, while the Nasdaq gained 1.7% on Friday and 4.5% for the week. The Dow Jones Industrial Average ended flat on Friday but still posted a weekly gain of 0.4%.
The April payrolls data showed that the US labor market remains resilient, with job growth exceeding consensus estimates. This has reduced the probability of a near-term recession, which had been a concern earlier this year amid tech layoffs and elevated interest rates. For bond markets, the strong jobs report reinforces the Federal Reserve's cautious stance on rate cuts. The yield on the 10-year Treasury note rose on the data, reflecting expectations that the Fed will keep rates higher for longer to combat inflation. Traders can monitor real-time yield movements on NowPrice's rates page.
Looking ahead, market participants will focus on upcoming inflation data, including the Consumer Price Index (CPI) for April, due later this month. A higher-than-expected CPI reading could further delay rate cuts, while a softer print might revive hopes for monetary easing. Additionally, corporate earnings reports from major retailers and tech companies will provide further clues on the health of the consumer and the broader economy.