US stocks ended at a record high on Friday, boosting the S&P 500 to a new closing high after a weak jobs report showed that the Federal Reserve will not raise interest rates soon.
After the report by the government about few jobs being created in August, stocks traded lower. However, by early afternoon, major indexes became positive, with utilities leading. Fed officials stated that the labor market is struggling, which justifies their decision to keep the rates at low levels.
According to Reuters, Senior Equity Strategist, Jim Russell, said, “The nonfarm payroll numbers feel well short of expectation, but the market reaction suggests a stronger-than-consensus number might have been met with a downward bias in equities.”
He added, “What we saw today called off the dogs to some degree and too the heat down a notch or two from investors’ concern about rate hikes.”
As Bloomberg reports, S&P rose 0.5% to hit a record of 2,007.71, altering the losses on the last day after declining thrice. The Dow Jones Industrial Average increased 67.78 points by 0.4% to 17,137.36, closing the week a point less than its record high. The Nasdaq Composite gained 20.61 points or 0.45% to close at 4,582.90.
The S&P and the Dow gained 0.2% for the week, and the Nasdaq gained 0.6%.
Stifel Nicolaus & Co. Managing director of equity trading, Lou Shaduk said, “We’re still at a time when bad news is good news for the market as far as equities are concerned. It still keeps the Fed in the game. They’re not going to pull QE sooner than anticipated.”
NRG Energy Inc, a power generator, gained 1.9% to close at $30.89 and XCEL Energy Inc gained 1.9% to $32.48.
Apple shares gained 0.9% to $98.97 after the company announced its plans to add new features for security to the iCloud service.
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