Stocks surged on Friday as investors reacted to the release of the February jobs report, which showed a strong increase in employment numbers but also a rise in the unemployment rate. The S&P 500 and Nasdaq Composite both saw gains, while the Dow Jones Industrial Average held steady.
The US economy added 275,000 jobs in February, surpassing Wall Street’s expectations. However, the unemployment rate also ticked up to 3.9%, causing some concern among investors. This mixed data has fueled speculation about a potential rate cut by the Federal Reserve after its June meeting.
Federal Reserve Chair Jerome Powell has hinted at a possible decrease in borrowing costs as the central bank grows more confident in inflation levels. This news has further boosted investor confidence in a forthcoming rate cut, potentially to take place mid-year.
Meanwhile, European Central Bank policymakers are contemplating a rate cut as inflation rates continue to fall faster than expected. In Japan, officials are considering lifting rates out of the negative zone.
The market also saw some individual stock movements on Friday. Shares of Costco dropped 5% following a sales miss, while Broadcom’s stock fell over 2% despite reporting strong revenue and forecasts.
On the commodity front, gold futures continued to rally amid growing optimism for a mid-year rate cut by the Federal Reserve. Spot gold is on track for its biggest weekly jump in five months, further adding to the overall positive sentiment in the market.
Overall, the market remains volatile as investors assess the impact of the latest economic data and await further signals from central banks regarding potential interest rate changes.