The Nasdaq Composite closed at a record 27,319.43 on Friday, gaining 1.66 percent, after a payroll report that came in far below expectations pushed traders to price out further Federal Reserve tightening. The S&P 500 rose 1.02 percent to 7,744.76 and the Dow Jones Industrial Average added 0.60 percent to 51,233.34.
The jobs report and the bond market
Nonfarm payrolls rose by just 29,000 last month, less than a third of the 90,000 consensus forecast, and the prior two months were revised down sharply. The two-year Treasury yield fell for a second straight session, reflecting the shift in rate expectations. Todd Schoenberger of CrossCheck Management said the weak print was "oddly enough, good news for stocks" because the bond market has been doing the Fed's work organically.
Tech leads, Nike drags
Semiconductor shares paced the advance. The Philadelphia Semiconductor Index climbed 3.1 percent, Nvidia rose 2.5 percent to an intraday high, and Oracle added 3 percent. Tesla gained 4.1 percent and SpaceX jumped 5.5 percent. Nike, meanwhile, dropped 5.6 percent after warning of a sharp annual revenue decline and announcing job cuts and a restructuring of global operations.
Breadth and sentiment
On the NYSE, advancing issues led decliners by a 3.27-to-1 margin; on the Nasdaq the ratio was 2.5-to-1. The S&P 500 notched nine new 52-week highs against 14 new lows, while the Nasdaq posted 35 new highs and 100 new lows. The VIX slipped to a one-week low of 15.67. Ten of eleven S&P 500 sectors rose, led by consumer discretionary and technology; healthcare lagged. Fair Isaac fell 1.5 percent on a report that housing regulators may ease mortgage credit-data rules for Fannie Mae and Freddie Mac.
Oil and crypto
Brent crude dipped below $100 a barrel after reports the European Union discussed releasing additional diesel and crude reserves, even as the Middle East conflict showed no fresh progress. Bitcoin rose 3.4 percent, with Coinbase and Strategy each up about 3.1 percent, reflecting broader risk-on appetite.