Wall Street Surges on Strong Jobs Report and Congress Deal

Wall Street stocks rose sharply on Friday, closing out the week on a high following a bumper jobs report and a deal in Congress to avert a US debt default.

The stronger-than-expected employment report released Friday morning suggests the US economy remains strong despite concerted action from the Federal Reserve to suppress demand in order to bring down high inflation.

The passage of a debt limit deal through both houses of Congress appears to have eased market fears of a potentially catastrophic debt default as well, with Wall Street’s “fear gauge” sinking to its lowest level since before the Covid-19 pandemic.

The tech-rich Nasdaq Composite Index rose 1.1 percent to finish the week on a new 13-month high of 13,240.77.

The Dow Jones Industrial Average rose 2.1 percent to 33,762.76, while the broad-based S&P 500 closed 1.5 percent higher at 4,282.37.

The deal to suspend the US debt limit and the “Goldilocks” jobs report — neither too good nor too bad — suggests the US economy “is not facing an immediate risk of a recession,” Edward Jones investment strategist Angelo Kourkafas told AFP.

“The mixed job reports that had something for both the doves and hawks suggests that they could possibly skip a hike in June and deliver more tightening if needed later in the year,” he added.

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – AFP)