US stocks end the week higher after solid earnings and the Goldilocks jobs report

• US stocks rose on Friday, with the Nasdaq 100 closing about 1% higher for the week.

• Solid earnings results and a weaker-than-expected jobs report in April helped push stock prices higher.

• “The case for rate cuts got a little stronger today. Goldilocks could be making a comeback,” said TradeStation’s David Russell.
  

U.S. stocks rose on Friday after a solid earnings report from Apple and a weaker-than-expected jobs report in April, raising the chances of a Federal Reserve rate cut later this year.

The U.S. economy added 175,000 jobs in April, well below economists’ forecast of 238,000 jobs and well below the 303,000 added in March. Meanwhile, the unemployment rate rose from 3.8% to 3.9%. The jobs report also showed the slowest year-over-year wage growth since June 2021.

“Wage pressure concerns have lingered in the market recently and today’s figure allays some of those fears. The first quarter saw some tough inflation numbers, but the second quarter could start on a cooler footing. Today, Goldilocks could be making a comeback,” TradeStation market strategist David Russell told Business Insider.

The Light Jobs Report should ultimately give the Fed more flexibility in accelerating the timing of rate cuts, and bond yields fell significantly with that sentiment in mind. The ten-year Treasury note fell 8 basis points to 4.50%.

Also helping to boost shares Friday was Apple, which rose about 7% after reporting a better-than-feared second-quarter earnings report. The iPhone maker also launched a historic $110 billion stock buyback program and increased its quarterly dividend by 4%, which was cheered by investors.

Here’s where the US indexes stood at 4pm on Friday:

Here’s what else happened today:

The story continues

In commodities, bonds and crypto:

• West Texas Intermediate crude fell 1.15% to $78.04 a barrel. Brent crude, the international benchmark, fell 0.98% to $82.85 per barrel.

• Gold fell 0.13% to $2,306.60 an ounce.

• The yield on ten-year government bonds fell by 8 basis points to 4.50%.

• Bitcoin rose 4.51% to $61,748.

Read the original article on Business Insider