US stocks closed higher on Friday, as job growth in April was stronger than expected, and wages rose moderately, keeping investors optimistic about the economic and interest rate outlook.
The Nasdaq index hit a record high, and the S&P 500 index was only slightly below the record high.
The US Department of Labor reported that 263,000 new jobs were created in April, far exceeding expectations, and the unemployment rate fell to 3.6%, the lowest level in more than 49 years. The average hourly wage was slightly lower than expected, indicating that inflationary pressures were moderate.
These data support the US Federal Reserve's (FED/Fed) patience stance on raising interest rates, which is a positive for the stock market.
“We continue to see employment growth growing stronger and it seems that inflation is getting slower and slower. This is really strange. You usually don’t see this. Basically, the signal to the market is that the Fed will not move. ," said Jamie Cox, managing partner of Harris Financial Group. “This may indicate that the company’s future earnings will be better.”
Amazon (AMZN.O) shares rose 3.2%, boosting the S&P 500 and Nasdaq, after CNBC reported that Buffett's Berkshire Hathaway (BRKa.N) first purchased The stock of this Internet retail giant.
The consumer discretionary sector rose 1.5%, leading the 11 major sectors of the S&P.
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