Stock Market Weekly Recap
Stocks End Week in the Red Despite Strong Jobs Report
The S&P 500 ended its two-week winning streak despite a strong rally on Friday. The stronger-than-expected jobs report did not lead to a surge in wages, sparking hopes of a soft landing for the economy. At 16:00 ET (21:00 GMT), the Dow Jones Industrial Average rose 307 points, or 0.80%, the S&P 500 rose 1.1%, and the Nasdaq added 1.2%. However, all three benchmarks closed the week in negative territory as the likelihood of a June rate cut decreased.
Positive Nonfarm Payrolls Report for March
New data released on Friday revealed that nonfarm payrolls grew by 303,000 jobs in March, surpassing the expected 212,000 gain. The unemployment rate dropped to 3.8% from 3.9% the previous month, while average earnings increased by 0.3% monthly, aligning with forecasts. Despite the surge in new job creation, wages did not rise significantly, easing concerns about inflation due to a rise in the labor force participation rate.
Market Events and Stock Movements
Apple announced layoffs in California, Tesla reduced prices for its Model Y SUVs, Johnson & Johnson revealed a major acquisition, and HubSpot received potential acquisition interest from Alphabet. These developments influenced stock movements in the market, with various companies experiencing both gains and losses.
Energy Sector Boosted by Rising Oil Prices
Energy stocks such as Valero Energy Corporation, Occidental Petroleum Corporation, and Baker Hughes Co saw increases of over 1% as oil prices reached their highest level in five months. Geopolitical tensions in the Middle East raised concerns about oil supply, driving up prices. Iran and Israel’s recent clashes have added to the uncertainty in the energy market.
