Nasdaq climbs to record after softer jobs data cools rate-hike expectations
US stocks rose on Friday, with the Nasdaq Composite reaching an intraday record high, as weaker-than-expected job data dampened expectations for an imminent Federal Reserve rate hike. The Labor Department reported a 29,000 increase in nonfarm payrolls last month, well below economists' expectations. This cooler data led to a reduction in the probability of a 25-basis point rate hike at the Fed's upcoming meeting from 24.4% to 23.8%.
Robert Bernstone, head of trading at SummitTX Capital, noted that while the economy isn't booming, it's acceptable as it prevents the need for a near-term rate hike. However, concerns over the economy and inflation persist, leading to cautious optimism. Despite the gains, both the Dow and S&P 500 were on track for a fourth week of declines, but the Nasdaq was experiencing its fifth weekly gain in six.
Tech stocks led the advance, with Nvidia and Tesla significantly boosting the S&P 500. However, job cuts at Nike and a drop in annual revenue forecasts weighed on the company's shares.
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