- Benchmark indices each rise more than 1 percent; Dow Jones posts triple-digit gain.
- US stocks supported by “goldilocks” jobs report.
- US wholesale inventories rise 0.1% in March.
US stocks surged across the board on Friday, as the Dow Jones Industrial Average posted a triple digit gain after an upbeat nonfarm payrolls report pointed to moderate economic growth in the months ahead.
The benchmark indices each gained more than 1 percent on Friday, with the Dow Jones rising 1.5 percent or 270.96 points to 181,95.02.
The S&P 500 rose 1.3 percent or 26.70 points to 2,114.70.
The technology-heavy Nasdaq Composite Index climbed 1.1 percent or 53.87 points to 4,999.42.
Nonfarm Payrolls Rise by 223,000
US employers added 223,000 jobs in April, a sign economic activity was on the rebound following a disappointing month of March, but in the eyes of many, not progressing fast enough to warrant an immediate rate-hike by the Federal Reserve. The “goldilocks” report struck a perfect tone with investors, who rallied behind a solid jobs recovery that would not lead to immediate rate tightening.
The Federal Reserve is expected to remain on the sidelines until the fall at the earliest.
March Figures Revised
The economy added just 85,000 jobs in March, the slowest pace of hiring since June 2012. The Labor Department had previously reported a gain of 126,000.
Wholesale Inventories Reaffirm Slow Q1 Growth
US wholesale inventories, which measure how quickly businesses are adjusting stockpiles and are used to calculate gross domestic product, rose just 0.1 percent in March, the Commerce Department reported on Friday. That followed a gain of 0.2 percent in February.
Today’s report likely reaffirms the Commerce Department’s very low estimate of first quarter GDP. Preliminary data showed GDP expansion of just 0.2 percent annually in the first quarter.