Stocks rebounded on Friday morning following the index's worst session in more than a year as traders assessed the March jobs report.
The S&P 500 rose 0.4%, while the Dow Jones Industrial Average rose 55 points, or 0.1%. The tech-rich Nasdaq Composite rose 0.4%.
Job growth came in at 303,000 in March, which was better than expected, while the unemployment rate came in at 3.8% for the month, as expected. Nonfarm payrolls are expected to increase by 200,000, based on Dow Jones estimates. Wages rose 0.3% for the month and 4.1% from a year ago, both in line with estimates.
Bond yields jumped and stock prices went up and down after the report. Investors are torn between wanting a strong economy to support further company earnings growth and wanting a weaker job market that would give the Federal Reserve the green light to start cutting interest rates.
"This report highlights the strengthening of the job market in the broader context of a US economy that continues to remain resilient to the impact of higher rates," said Joe Gaffoglio, President of Mutual of America Capital Management.
The stock market bounced back on Friday after a sell-off on Wall Street during Thursday's trading session. The Dow Jones fell about 530 points, or 1.35%, marking its biggest daily decline since March 2023 and its fourth straight losing session. Stocks have been weak this week as rates tend to rise.
The S&P 500 and Nasdaq Composite declined by 1.23% and 1.4%, respectively. All three major stocks traded in the red early as crude oil prices surged and Minneapolis Fed President Neel Kashkari questioned whether interest rates should be cut amid still high inflation.
"In the short term, equities may be exposed to some asset accumulation after a strong first-quarter return," said Terry Sandven, chief equity strategist at Bank of America Wealth Management. "Moderate withdrawals will be in the normal and uptrend of the market."
