Dow rallies to close at new high amid jobs data, stimulus hope
NEW YORK, NY -- Stocks returned to record highs on Wall Street Friday as traders took a discouraging jobs report as a sign that Congress may finally move on delivering more aid for the pandemic-stricken economy.
The Dow closed up 0.8% at a new record level above 30,100 to cap a solid week (and start to December) for the markets. The S&P 500 rose 0.9%.
In another bullish signal, small-company stocks, which stand to benefit greatly from an improving economy, rose much more than the rest of the market.
Investors are also banking on hopes that the upcoming distribution of coronavirus vaccines will start getting the global economy on the path back to normalcy some time next year.
The Department of Labor earlier Friday said U.S. employers added 245,000 jobs last month and the unemployment rate slipped to 6.7%.
Although the government reported a lower-than-expected increase in jobs, investors appear to be betting that the weaker employment gains will put more pressure on the outgoing Trump administration and Congress to approve a new stimulus package before Joe Biden is inaugurated next month.
The fresh economic data shows the labor market clawing its way out of the pandemic-induced downturn, but still far away from a full recovery. The unemployment rate in the U.S. was 3.5% in February before the crisis hit.
