US stocks jumped on Friday, rebounding from a steep slide a day earlier, as a robust United States jobs report added to optimism from proposed trade talks between United States and China next week.Nonfarm payrolls increased by 312,000 jobs in December, largest gain since February and beat economists' expectations of 177,000 jobs.
Wages also rose, while unemployment rate moved off a 49-year low, Labor Department said.The report allayed fears over slowing economic growth, while plans of a fresh round of United States -China trade talks on Jan.
7-8 also helped boost sentiment.All 11 major SP sectors were higher with industrial and technology rising about 2 percent.
The biggest gain was in energy stocks, which jumped 2.6 percent as crude oil prices rose.Financials rose as banks stand to gain from higher interest rates.
The KBW Bank Index gained 2.20 percent."It's going to be an interesting day to say least.
We'll see if early strength in market holds, given (jobs report) will likely give more reason for Fed raising, not cutting, rates as some had speculated during day yesterday," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.The jobs report bolstered concerns that Federal Reserve would stick with its plan for two interest rate hikes this year.At 9:50 a.m.
ET Dow Jones Industrial Average was up 406.06 points, or 1.79 percent, at 23,092.28, SP 500 was up 45.08 points, or 1.84 percent, at 2,492.97 and Nasdaq Composite was up 133.75 points, or 2.07 percent, at 6,597.25.The yield on two-year United States treasury notes, which reflect traders' expectations of rate hikes, rose after jobs report.
Those yields fell below Fed's policy rate for first time in over a decade on Thursday.Investors will be looking for clues on monetary policy from Fed Chair Jerome Powell's speech scheduled at 10:15 a.m.
ET (1515 GMT).Fears of a slowdown were heightened on Thursday after data showed United States factory activity slowed last month and Apple Inc gave a dire revenue warning that sent Wall Street plunging over 2 percent.Apple jumped 2.3 percent, coming off a 10 percent slide on Thursday, and helped bolster SP and Nasdaq along with Microsoft and Amamzon.com Inc.Shares of trade-sensitive stocks rose, with gains in Boeing Co, Caterpillar and 3M Co bolstering Dow.Advancing issues outnumbered decliners for a 7.67-to-1 ratio on NYSE and a 5.35-to-1 ratio on Nasdaq.The SP index recorded no new 52-week highs and one new low, while Nasdaq recorded three new highs and nine new lows.