Stocks up as wage uptick fears subside

U.S. stocks rose while Treasuries fell as the latest labor report showed the American economy continued to strengthen without the prior month’s rapid wage gains that stoked inflation fears. The dollar weakened against most peers.

The S&P 500 rose to the highest since Feb. 1, capping a 3.5 percent rally in the week after employers hired the most workers in almost two years and wages remained stagnant, allaying fears the Federal Reserve may accelerate its rate-hike schedule. The measure sits 3 percent below its all-time high. Tech shares paced gains, taking the Nasdaq Composite to a fresh record as it capped an 12 percent rally since a February low.

Ten-year Treasury yields headed for the first oneweek advance in three, while the greenback slid against most major currencies except for the Japanese yen. West Texas crude advanced toward $62 a barrel.

The U.S. employment data presented a “Goldilocks” picture of the economy for stock investors, giving the impression the Fed will have room to gradually increase rates this year. Shares also got a boost from news President Trump accepted an invitation to meet North Korean leader Kim Jong Un, which followed a narrow-erthan-expected tariff plan from the White House Thursday that eased speculation of a trade war.

“It was a great jobs report — it tells a good story for the country, but it was as good or even better for the financial markets,” Rich Guerrini, the chief executive officer of PNC Investments, said by phone. “As we’ve looked at the past 30 days, really what started the volatility was a jobs report and the return of inflation due to wage growth. So you roll the calendar ahead a month, and you’re at a place getting another very good jobs report, but what the market loved was the wage inflationary issue really didn’t show itself.”