Positive jobs report lights up Wall Street

U.S. stocks bounce higher on non-farm payrolls data

Lola Evans
03 May 2025, 01:42 GMT+10

Positive jobs report lights up Wall Street

Total nonfarm payroll employment increased by 177,000 in April, and the unemployment rate was unchanged at 4.2 percent.
The Dow Jones Industrial Average (^DJI) climbed 564.47 points, or 1.39 percent, to settle at 41,317.43, marking its best day in weeks.
Global stock markets closed the week on a high note Friday, with major indices across Canada, the UK, Europe, Asia, Africa, and the Pacific region posting strong gains.

NEW YORK, New York - A better-than-expected jobs report boosted U.S. stock markets Friday.

"Total nonfarm payroll employment increased by 177,000 in April, and the unemployment rate was unchanged at 4.2 percent," the U.S. Bureau of Labor Statistics reported Friday. "Employment continued to trend up in health care, transportation and warehousing, financial activities, and social assistance. Federal government employment declined," the report said.

The repoirt set the stage for a major acroo-the-board rally on Wall Street. "There was really not anything not to like about the jobs data; it indicates that the economy is doing just fine," Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois told Reuters Friday. "There are still discussions about the impacts of tariffs, but so far at least, that data has not shown up in a lot of the numbers."

Dow Jones, S&P 500 and Nasdaq Make Major Gains

The benchmark S&P 500 (^GSPC) jumped 82.53 points, or 1.47 percent, to close at 5,686.67, with trading volume reaching 2.966 billion shares. The rally was broad-based, with technology and financial sectors leading the charge.

The Nasdaq Composite (^IXIC), heavily weighted toward tech stocks, jumped 266.99 points, or 1.51 percent, to finish at 17,977.73. Trading activity was robust, with 6.771 billion shares changing hands.

Dow Jones Joins the Rally

The Dow Jones Industrial Average (^DJI) climbed 564.47 points, or 1.39 percent, to settle at 41,317.43, marking its best day in weeks. Volume totaled 574.51 million shares as blue-chip stocks across industries posted solid gains.

Market Drivers

The rally came after the jobs report, and after the U.S. reported softer-than-expected producer price data, reinforcing hopes that the Federal Reserve may cut rates later this year.

"Today's move reflects growing confidence that the economy is headed for a 'soft landing,'" said Mark Johnson, chief market strategist at Sterling Capital. "With inflation moderating and earnings holding up, the bulls are back in control," he said.

Global Forex Markets Show Mixed Movements, Aussie Dollar Gains

The foreign exchange market saw divergent trends in major currency pairs on Friday, with the euro and commodity-linked currencies advancing while the U.S. dollar weakened against several counterparts.

Euro and Pound Edge Higher

The EUR/USD pair climbed to 1.1304, up 0.16 percent, as the euro strengthened amid improving risk sentiment in European markets. Meanwhile, the GBP/USD rose modestly to 1.3278, gaining 0.07 percent, as the British pound held steady ahead of key economic data releases.

US Dollar Weakens Against Commodity Currencies

The Australian dollar was one of the day's top performers, with AUD/USD surging 1.03 percent to 0.6448, supported by stronger commodity prices. The New Zealand dollar also gained, with NZD/USD rising 0.68 percent to 0.5945.

However, the greenback faced pressure elsewhere. The USD/JPY slipped 0.24 percent to 144.97, retreating from recent highs. The USD/CAD fell 0.34 percent to 1.3806 as crude oil prices buoyed the Canadian dollar. Similarly, the USD/CHF dropped 0.34 percent to 0.8263, reflecting a slight safe-haven bid for the Swiss franc.

Market Drivers and Outlook

Analysts attributed the dollar's mixed performance to shifting expectations on Federal Reserve policy and global risk appetite.

Global Markets Rally on Friday as Major Indices Post Gains

Global stock markets closed the week on a high note Friday, with major indices across Canada, the UK, Europe, Asia, Africa, and the Pacific region posting strong gains amid renewed investor optimism.

Europe Leads the Charge

The DAX (^GDAXI) surged 589.67 points, or 2.62 percent, to close at 23,086.65, marking one of the strongest performances in the region. France's CAC 40 (^FCHI) followed closely, climbing 176.61 points, or 2.33 percent, to 7,770.48. The pan-European EURO STOXX 50 (^STOXX50E) also saw a robust increase, rising 124.97 points, or 2.42 percent, to settle at 5,285.19.

Belgium's BEL 20 (^BFX) added 63.80 points, or 1.44 percent, closing at 4,493.31. The Euronext 100 (^N100) gained 34.25 points, or 2.26 percent, ending at 1,548.49.

UK Finishes on High Note

The UK'sFTSE 100 (^FTSE)advanced 99.55 points, or 1.17 percent, finishing at 8,596.35.

Asia-Pacific and Southeast Asian Markets Mostly Higher

In Asia, Hong Kong's Hang Seng Index (^HSI) jumped 385.27 points, or 1.74 percent, to 22,504.68. Australia's S&P/ASX 200 (^AXJO) rose 92.40 points, or 1.13 percent, to 8,238.00, while the broader All Ordinaries (^AORD) increased by 90.50 points, or 1.08 percent, to 8,456.20.

New Zealand's S&P/NZX 50 (^NZ50) climbed 179.29 points, or 1.48 percent, to 12,327.89. India's S&P BSE Sensex (^BSESN) edged up 259.75 points, or 0.32 percent, to a record 80,501.99. Indonesia's IDX Composite (^JKSE) added 48.94 points, or 0.72 percent, closing at 6,815.73.

Taiwan's TWSE (^TWII) was a standout performer, soaring 552.61 points, or 2.73 percent, to 20,787.64. Japan's Nikkei 225 (^N225) also ended higher, gaining 378.39 points, or 1.04 percent, at 36,830.69.

South Korea's KOSPI (^KS11) inched up 3.18 points, or 0.12 percent, to 2,559.79. Malaysia's FTSE Bursa Malaysia KLCI (^KLSE) saw a modest rise of 2.27 points, or 0.15 percent, ending at 1,542.49.

However, China's SSE Composite (000001.SS) bucked the trend, slipping 7.62 points, or 0.23 percent, to 3,279.03.

Canada

TSX Rises on Commodity Strength

North of the border, Canada's S&P/TSX Composite (^GSPTSE) advanced 235.96 points, or 0.95 percent, to close at 25,031.51, supported by strength in energy and materials stocks. Trading volume reached 207.96 million shares.