S&P 500 closes out best week since November

Wall Street closed out a winning week Friday as the S&P 500 notched its fifth gain in a row and its biggest weekly increase since November.

The benchmark index rose 0.4 percent and ended the week 4.6 percent higher, more than making up for its decline in January. The latest gain nudged the S&P 500 to another all-time high. The Nasdaq composite also capped the week with a record high. Smallcompany stocks fared even better than the broader market, a sign that investors are feeling more optimistic about the economy.

The market largely shrugged off a dismal jobs report for January that showed the U.S. economy remaining in dire straits because of the pandemic. Investors have been focusing instead on the prospects for another economic boost from Washington. Overnight, the Senate narrowly had passed a measure that will fast-track aid.

“It looks as if the Democrats are moving ahead with or without support from Republicans, and that’s helping the market’s tone,” said Quincy Krosby, chief market strategist at Prudential Financial.

Surprisingly good company earnings reports, news that a recent surge in new coronavirus cases is easing and progress in the distribution of vaccine have also helped keep investors in a buying mood, she said.

The S&P 500 index rose 15.09 points, or 0.4 percent, to 3,886.83. Its weekly gain is its biggest since November. The Dow Jones Industrial Average gained 92.38 points, or 0.3 percent, to 31,148.24. The Nasdaq rose 78.55 points, or 0.6 percent, to 13,856.30.

The Department of Labor said Friday that employers added only 49,000 jobs in January, far below economists’ forecasts. The disappointing report came as much of the country remains saturated with coronavirus cases. A report on Thursday showed the number of Americans who filed for unemployment benefits remained well above historical norms.

“It’s very consistent with data over the last two months which show that job growth is slowing,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.

Service industries continue to be the hardest hit by the pandemic as people continue to refrain from travel and dining out, among other activities.

“In some ways, it seems the reopening economy is still struggling a little bit, and it’s responsible for quite a few jobs,” Samana said.