Wall Street stocks on Friday rose after the latest monthly US jobs report pointed to strength in the US economy and geopolitical tensions eased.
Technology stocks led the rally, with gains in heavyweight companies, such as Apple Inc, Microsoft Corp and Alphabet Inc lifting the S&P 500 tech index to a record high.
US government data showed that last month the US economy added 223,000 non-farm jobs and average hourly wages increased 0.3 percent, both topping economists’ estimates.
The unemployment rate fell to an 18-year low of 3.8 percent. Data on construction spending and industrial production also pointed to accelerating economic growth.
Markets got a reprieve as Italy installed a coalition government, removing the risk of a repeat vote dominated by debate on whether the country would quit the eurozone.
Further calming geopolitical concerns, US President Donald Trump announced the resumption of plans for a summit with North Korean leader Kim Jong-un on June 12.
“The Trump economy continues to work very, very well,” said Stephen Massocca, senior vice president at Wedbush Securities Inc in San Francisco. “It’s good news for the market.”
The Dow Jones Industrial Average on Friday rose 219.37 points, or 0.9 percent, to 24,635.21, the S&P 500 gained 29.35 points, or 1.08 percent, to 2,734.62 and the NASDAQ Composite added 112.22 points, or 1.51 percent, to 7,554.33.
The Cboe Volatility index, a barometer of expected near-term stock market gyrations, ended down at 13.46, its lowest closing level in a week.
For the week, the S&P rose 0.48 percent, the Dow lost 0.48 percent and the NASDAQ gained 1.62 percent.
The strong economic data raised the likelihood the US Federal Reserve will raise interest rates four times this year, some investors said.
Concerns that rising rates will dampen growth have sent US stocks tumbling on several occasions this year.
However, investors said they did not find Friday’s data concerning.
“The wage numbers were a little warm, but that wasn’t enough to spook people,” Massocca said.
However, investors are keeping an eye out on developments around trade after Washington imposed steel and aluminum tariffs on imports from Canada, Mexico and the EU.
Canada and Mexico retaliated, targeting US steel and aluminum imports and products such as whiskey and blue jeans.
Tech stocks, which led gains on Friday, might be somewhat insulated from those trade risks.
The NASDAQ was just more than 1 percent away from a record high as tech stocks largely cushioned the index in the past week even while the broader markets suffered.
By comparison, the S&P 500 was 4.8 percent off its Jan. 26 peak.
“Tech isn’t in the headlines as groups that are going to be impacted by what’s going on with regards to tariffs in the EU, whereas others are,” said Daniel Morgan, portfolio manager at Synovus Trust Co in Atlanta.
Advancing issues outnumbered declining ones on the New York Stock Exchange by a 2.47-to-1 ratio; on NASDAQ, a 2.41-to-1 ratio favored advancers.
The S&P 500 posted 28 new 52-week highs and eight new lows; the NASDAQ Composite recorded 181 new highs and 42 new lows.
Volume on US exchanges was 7.04 billion shares, compared with the 6.61 billion average for the full session over the past 20 trading days.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s