Stocks rise as investors cheer jobs report that may keep interest rates low
NEW YORK — U.S. stocks rose Friday as investors viewed a relatively weak jobs report for August as likely to help keep interest rates low. Banks, energy companies and automakers led the way.
The Labor Department said U.S. employers added 156,000 jobs in August. That was a bit less than analysts expected, but investors were pleased that the economy kept growing at a steady pace while inflation remains weak. They bet that will keep the Federal Reserve from raising interest rates too quickly.
The pattern of slow but steady job gains and weak inflation has helped push stocks higher for years. Investors have worried at times that the Federal Reserve would raise rates too fast and that the economy would stumble.
“The market is looking at economic news that is below expectations as a sign that the Federal Reserve is not going to do much in terms of interest rate hikes,” said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute. He said Friday’s report was “like almost every other jobs report we’ve seen over the last four years.”
The Standard & Poor’s 500 index rose 4.90 points, or 0.2 percent, to 2,475.55. The Dow Jones industrial average gained 39.46 points, or 0.2 percent, to 21,987.56. The blue chip index had its first change in more than two years Friday, as longtime Dow component DuPont combined with former rival Dow Chemical to form DowDuPont. The Nasdaq composite added 6.67 points, or 0.1 percent, to 6,435.33. It was the best week this year for the Nasdaq as technology and health care companies surged. The index is at record highs.
The Russell 2000 index of smaller-company advanced 8.29 points, or 0.6 percent, to 1,413.57. stocks