US stocks soared on Friday, with major indexes posting gains as investors cheered the September jobs report that showed stronger-than-expected hiring in the US economy. Meanwhile, geopolitical concerns in the Middle East and the US dockworkers’ strike resolution also weighed on markets.
- Market Surge: The S&P 500 climbed 0.9%, the Dow Jones gained over 300 points (0.8%), and the Nasdaq rallied 1.2%, recouping losses from earlier in the week.
- Jobs Data Exceeds Forecasts: The US economy added 254,000 jobs in September, far surpassing expectations, while the unemployment rate fell to 4.1%. This robust report bolstered confidence in the labour market and swung expectations toward a smaller interest rate cut of 25 basis points from the Federal Reserve in November.
- Ongoing Concerns: Despite the rally, investors closely watched Middle East tensions. Oil prices surged due to fears that Israel could target Iran’s oil facilities, though President Biden sought to calm the situation.
- Port Strike Resolution: The end of the US dockworkers’ strike provided relief, as a tentative wage deal was reached. However, some issues remain unresolved, leaving uncertainty over potential disruptions later in the year.
The combination of strong jobs data and easing domestic labour tensions helped stocks recover from a volatile week, but concerns over escalating conflict in the Middle East and its impact on oil prices continue to linger.
