NEW YORK — The Nasdaq Composite advanced 1.2 percent on Friday, adding 319.27 points to close at 27,190.86, recording an all-time intraday high before pulling back slightly as Treasury yields reversed course.
The S&P 500 gained 0.7 percent to 7,722.72, while the Dow Jones Industrial Average added 250 points to 51,176.46. Friday's rally followed a sharply weaker-than-expected September employment report.
The U.S. economy added only 29,000 nonfarm payrolls last month, with the unemployment rate rising to 4.2 percent. Consensus had anticipated 84,000 jobs growth and a steady 4.1 percent jobless rate.
Phil Blancato, chief market strategist at Osaic, said the report hit a goldilocks sweet spot for equities: "Not too hot, not too cold, not overly great and not weakening."
Traders immediately repriced Federal Reserve expectations. Fed funds futures now show a 77 percent probability the central bank holds rates steady at its October meeting, according to the CME FedWatch Tool.
Tech stocks led the advance as risk appetite returned. Nvidia hit an all-time intraday high for the first time since May, though finished below its previous record close. CrowdStrike and Palo Alto Networks posted new all-time highs. AMD rose nearly 3 percent to an all-time high.
The Nasdaq finished the week up 0.6 percent, marking its third consecutive daily gain. The S&P 500 was largely flat for the week, declining 0.3 percent. The Dow fell 1.3 percent as both broader averages contended with a global bond rout.
Oil prices pulled back, supporting equities, after reports emerged that European nations are weighing releases of strategic fuel reserves, pressured by the Trump administration.
Saira Malik, chief investment officer at Nuveen, said the jobs report could provide a runway into earnings season, which she expects to be robust. "This could be the start of the Santa Claus rally that we've all been hoping for," she said.
