S&P 500 hits record high after bad April jobs-report miss dampens inflation fears
- Tech stocks jumped on Friday after a weak April jobs report led to a rally in stay-at-home stocks.
- April saw an addition of 266,000 jobs, well below the estimates forecast of 1 million.
- The April jobs report represented the worst miss since 1998.
Technology stocks soared on Friday and the S&P 500 hit a record high after a weak April jobs report led to investors bidding up popular stay-at-home stocks that have performed well during the pandemic.
April saw an addition of 266,000 jobs, well below the estimated forecast of 1 million. Unemployment rose to 6.1% from 6.0%. Economists had expected the rate to fall to 5.8%. The jobs report represented the worst miss since 1998.
The report likely gave some credence to the Fed's wait and see approach with regards to raising interest rates and whether rising inflation is transitory or not.
While the Nasdaq 100 jumped following the release of the April jobs report, the Dow Jones moved lower as cyclical stocks tied to a reopened economy were out of favor.
Here's where US indexes stood at 10:50 a.m. ET on Friday:
- S&P 500: 4,230.35, up 0.68%
- Dow Jones industrial average: 34,689.74 up 0.41% (141.17 points)
- Nasdaq composite: 13,802.10 up 1.24%
Square jumped 6% following its first-quarter earnings report, which surpassed analyst estimates. The company saw its bitcoin revenue jump 1,000% to $3.5 billion, and disclosed that it's the third-largest corporate holder of the cryptocurrency.
The surge in bitcoin interest has led to banks opening up new business divisions to gain exposure. A report said Citi is planning to launch its own crypto trading services, and Goldman is also launching a cryptocurrency trading desk.
Since the announcement of divorce between Bill and Melinda Gates, more than $5 billion worth of stocks have been transferred to Melinda from Bill Gates' Cascade Investment holding company.
Oil prices were lower. West Texas Intermediate crude fell 0.7%, to $64.29 per barrel. Brent crude, oil's international benchmark, dropped by 0.6%, to $67.66 per barrel.
Gold jumped 0.8%, to $1,831.20 per ounce.