Stocks rebounded again on Friday as investors digested more strong labor market data that will play into expectations of interest rate cuts.
The Dow Jones Industrial Average (^DJI) rose 0.3%, or about 120 points. The S&P 500 (^GSPC) rose 0.5% while the tech-heavy Nasdaq Composite (^IXIC) advanced 0.6%.
Major indexes were initially divided after the release of the US December jobs report, which showed that the US economy added 216,000 jobs in December, higher than the 175,000 that economists had expected. The unemployment rate was unchanged at 3.7%.
Separate data from the Institute for Supply Management (ISM) showed services activity slowed in December. The services PMI for the month came in at 50.6, down from November's reading of 52.7. While a reading above 50 indicates expansion, the December number represents the lowest level of services activity since May.
Stocks fell in the first week of 2024 in a notable reversal of the massive rally fueled by high hopes that the Federal Reserve will soon begin easing monetary policy. But doubts have emerged about whether policymakers are willing to pivot.
Read more: What a pause on federal interest rate hikes means for bank accounts, CDs, loans and credit cards
Against this backdrop, US bond yields continued to rise, with the 10-year Treasury yield (^TNX) rising 3.7 basis points to 4.04% after rising on Thursday.
Elsewhere, iPhone supplier Foxconn (2354.TW) said it expects revenue to decline in the first quarter amid slowing market demand. Shares of Apple (AAPL) fell in premarket trading, adding to losses after two analysts downgraded the iPhone maker over concerns about sales of its next smartphone.
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