Traders work on the floor of the New York Stock Exchange during afternoon trading on October 3, 2024 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures rose on Friday after the all-important jobs report came in much better than economists expected.
Futures linked to the Dow Jones Industrial Average Increased by 264 points (0.6%). S&P500 futures and Nasdaq 100 futures They rose by 0.9% and 1.2%, respectively.
Nonfarm payrolls rose by 254,000 in September, far exceeding the 150,000 increase expected by economists compiled by Dow Jones. The unemployment rate fell to 4.1%, despite expectations that it would remain stable at 4.2%.
Friday’s pre-market gains marked a turnaround after stock markets got off to a choppy start in October due to rising geopolitical tensions in the Middle East. The jobs report appears to have turned investors’ focus back to the states of the U.S. economy.
“After a summer of weak labor data, this is an encouraging sign that the U.S. economy remains resilient, supported by a healthy labor market,” said Michelle Kluber, head of ETF model portfolio at GlobalX. It’s the material,” he said. Good economic news is good news for the stock market because it increases the likelihood of a soft landing. ”
Friday’s gains could allow the major averages to reverse this week’s losses. The S&P 500, like the Dow, is down 0.7% since the beginning of the week. The Nasdaq is expected to decline 1.1% over the same period.
Oil prices rose another 1.6% on Friday, adding to the previous day’s 5% rise. Oil prices have risen as a result of the escalating conflict in the Middle East following Iran’s missile attack on Israel. Prices were up nearly 9% through the start of the week.
This week saw an unusual rise in energy prices due to rising oil prices, with the S&P 500 index rising 5.9%. This puts the sector on pace to post its biggest weekly gain in more than a year.
Indeed, one of the overhangs was removed after the International Longshoremen’s Association and the American Maritime Union reached a tentative agreement on wages and a high-profile dock strike ended Thursday night. The parties also agreed to extend the existing contract until January to allow more time for further negotiations.
