The Dow surged by more than 260 points following the release of strong job data and the end of the U.S. dockworkers’ strike, indicating a robust economy. According to the Bureau of Labor Statistics, 254,000 jobs were added in September; the unemployment rate dipped to 4.1%.
This performance exceeded the expectations of economists, who had forecasted a gain of 140,000 jobs and a stable unemployment rate of 4.2%. The better-than-expected labor market data has bolstered investor confidence, suggesting the Federal Reserve’s policies are steering the economy in the right direction.
The focus now shifts to the consumer price index (CPI) and producer price index (PPI) reports, which will be released next Friday and will provide further insight into inflation and the broader economic outlook.
Shortly after the market opened, the Dow Jones Industrial Average jumped 0.6%, or 261 points, to 42,275. The tech-heavy Nasdaq surged 1.1%, and the S&P 500 rose 0.7%.
Meanwhile, oil prices continued their upward trajectory, albeit not by much. Friday morning, West Texas Intermediate crude rose by 0.5% to reach $74.12 per barrel, while Brent crude increased by 0.6%, trading at around $78.10 per barrel.
Port union suspends the strike
The ILA, a major U.S. dockworkers union, ended its nearly weeklong strike late Thursday after reaching a tentative wage agreement and extending its contract with the United States Maritime Alliance through January 15. This extension provides time to negotiate a new, long-term contract.
The resolution has alleviated concerns about potential disruptions to the supply chain, particularly for essential goods such as medicines and other critical items, ensuring their continued flow without interruption.