US STOCKS-Wall Street indexes rise after strong jobs data

Shockwave Medical

05/04/2024 21:00

* 
      Tesla falls on report automaker scrapping low-cost car
plans 
    

        * 
      March nonfarm payrolls stronger than expected
    

  
 (Updates to 1600 ET)
    By Chibuike Oguh
       NEW YORK, April 5 (Reuters) - U.S. stocks finished
higher on Friday after a strong jobs report reinforced the view
that the economy remains healthy even as it suggested the
Federal Reserve could delay cutting interest rates.
    All major S&P 500 sectors advanced, with communication
services  .SPLRCL , industrials  .SPLRCI  and technology
 .SPLRCT  among those leading gains.
    U.S. Labor Department data showed employers hired far more
workers in March than expected and kept steadily lifting wages,
suggesting the economy ended the first quarter on solid ground.
    The data stoked expectations the Fed will likely delay
cutting interest rates given that a recession is nowhere in
sight, said Tom Plumb, president and portfolio manager at Plumb
Funds in Madison, Wisconsin.
    "What we are continuing to see is that a robust economy is
not necessarily inflationary, and this labor report, even though
it's just for one month, reinforces that there's less likelihood
of a recession, which is more important than the expectations of
the timing of interest rate reductions," Plumb said. 
        
  
    According to preliminary data, the S&P 500
 .SPX  gained 57.87 points, or 1.12%, to end at 5,204.30 points,
while the Nasdaq Composite  .IXIC  gained 194.54 points, or
1.21%, to 16,248.52. The Dow Jones Industrial Average
 .DJI  rose 306.18 points, or 0.79%, to 38,903.16.
    The S&P 500 posted a weekly decline after mixed economic
data during the week, such as the soft services activity report,
the stronger manufacturing report and comments from
policymakers.
    Money markets are now pricing in around two rate cuts this
year, down from three a few weeks ago, according to LSEG.
    Tesla  TSLA.O  bucked the day's broader market trend, with
its shares losing ground following a Reuters report that the
electric carmaker had canceled its inexpensive car that was
expected to drive its growth into a mass-market automaker.
    Among the day's gainers, Krispy Kreme  DNUT.O , which rose
after Piper Sandler analysts upgraded the doughnut chain to
"overweight" from "neutral". Shockwave Medical  SWAV.O  gained
after Johnson & Johnson  JNJ.N  agreed to buy the medical device
maker for $12.5 billion.

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US wages growth    https://reut.rs/3VM1MIs
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 (Reporting by Chibuike Oguh in New York, additional reporting
by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by
David Gregorio)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))