Traders work on the floor of the New York Stock Exchange during afternoon trading on October 03, 2024 in New York City.
Michael M. Santiago | Getty Images
U.S. stock futures rallied on Friday after the all-important jobs data came in much stronger than economists expected.
Futures tied to the Dow Jones Industrial Average gained 264 points, or 0.6%. S&P 500 futures and Nasdaq 100 futures climbed 0.9% and 1.2%, respectively.
Nonfarm payrolls grew by 254,000 jobs in September, far outpacing the forecasted gain of 150,000 from economists polled by Dow Jones. The unemployment rate ticked down to 4.1% despite expectations for it to hold steady at 4.2%.
Friday’s premarket advances mark a turn after mounting geopolitical tensions in the Middle East gave way to a shaky start in October for stocks. The jobs report appeared to shift investor focus back to the state for the U.S. economy.
“After a summer of weak labor data readings, this is a reassuring reading that the U.S. economy remains resilient, supported by a healthy labor market,” said Michelle Cluver, head of ETF model portfolios at Global X. “We remain in an environment where good economic news is good news for the equity market as it increases the potential for a soft landing.”
With Friday’s gain, major averages could claw back losses for this week. The S&P 500 is off 0.7% week to date, as is the Dow. The Nasdaq is on track for a loss of 1.1% in the period.
Crude oil prices rose again on Friday, bringing the week-to-date gain close to 9%. Oil has been pushed higher as a result of intensifying conflict in the Middle East after Iran launched a missile attack on Israel.
Energy prices have taken an idiosyncratic leg higher this week as oil rallied, with the S&P 500 sector up 5.9%. With that, the sector is on pace to notch its biggest weekly gain in more than a year.
A closely watched port strike ended Thursday night, as the International Longshoremen’s Association and the United States Maritime Alliance reached a tentative agreement on wages. The parties also agreed to extend their existing contract into January to allow more time for further negotiations.