The major averages finished firmly higher Friday, with the Dow climbing 263 points, snapping its six-week losing streak. The S&P 500 surged 1.1%, while the Nasdaq Composite jumped 1.7%. Stocks notched their best week of the year as disappointing jobs data increased the likelihood of Fed rate cuts. For the week, the Dow rallied 4.7%, the S&P 500 gained 4.4%, and the Nasdaq Composite added 3.9%.
The Labor Department’s non-farm payrolls report showed the U.S. economy added 75,000 jobs in May, well below expectations of 175,000. The unemployment rate remained unchanged at 3.6%, while average hourly earnings increased at a 3.1% annualized clip, slightly below forecasts. According to Fed-fund futures data from CME Group, traders are now pricing in a nearly 85% chance of at least one rate cut by July, up from 50% at the start of the week. Treasuries extended gains following the jobs report, with the yield on the benchmark 10-year note down four basis points to 2.08%. In commodities, WTI crude gained 2.7% after Saudi Arabia suggested OPEC may extend production cuts.
All 11 S&P 500 sectors posted solid gains this week, with Materials surging more than 9% and Tech shares jumping 6%. Every group besides Communications Services, Real Estate, and Utilities rallied at least 4% on the week. In earnings Friday, Beyond Meat advanced 39.4% to $138.65 after the plant-based meat provider topped analyst revenue estimates and raised guidance. Breadth was positive on issues by 5:2 on the NYSE and 12:7 on the Nasdaq. Composite NYSE volume was more than 3.1 billion shares.