Stocks rebounded back on Friday after two days of mixed moves, as data showed that U.S. job opportunities grew beyond expectations in the last one month.
The Dow Jones Industrial Average went high by 197.16 points to 26,504.95. The S&P 500 gained about 1% to 2,945.64 posting its high reach since early April. The Nasdaq Composite gained 1.6% registering a record high of 8,164.
Reportedly, it is Warren Buffett’s Berkshire Hathaway investments that boosted Amazon’s shares.
A report from the Labor Department released on Friday shows that the unemployment rate went down by 3.6% which is the lowest seen since December 1969. There was a job surge in April with the U.S adding 263,000 new hires. The nonfarm payroll growth surpassed Wall Street estimates of 190,000 and the Dow Jones average of 3.8% jobless rate.
The markets saw two uninterrupted days of losses as a result of Fed Chairman Jerome Powell’s sentiments on Wednesday, when he said that low inflation pressures were transitory. His comments left traders thinking Fed would not slash insurance rates as expected disappointing them.
Speaking to CNBC on Friday, Cleveland Fed President Loretta Mester said it wasn’t necessary to adjust the monetary policy of the central bank. St. Louis Fed President James Bullard described the Fed’s monetary measure as “a little tight” which may need reconsideration.
Amazon led the Friday’s rally. Warren Buffet told CNBC on Thursday that one of Berkshire Hathaway investment manager has been purchasing Amazon. Amazon’s shares gained in value by 3.2% on Friday.
Tesla shares rose by 4.5% following the electric car maker’s announcement that it had raised stock size and bond offering of 2.7 million announced earlier to 3.1 million. CEO Elon Musk has planned to buy more shares worth $25 million than earlier announced.
The Dow Jones suffered a 0.1% weekly loss following Powell’s comments that triggered a sell-off if two days continuously in the course of the week. The S&P 500 and Nasdaq closed at a slight high.
Majority of the S&P 500 companies have reported their quarter one earnings with the results going beyond the expectations. 75% of the S&P 500 companies as per FactSet have surpassed earnings estimates.