Investing.com – U.S. stocks jumped on Friday, taking bets that interest rates would soon be cut in stride as a much stronger-than-expected jobs report failed to spark a jump in wages, fueling hopes of a soft landing for the economy. .
At 1:17 pm ET (17:17 GMT), the price was up 345 points, or 0.9%, up 1.2% and up 1.5%.
Nonfarm payrolls rose more than expected in March
Data released earlier Friday showed jobs increased by 303,000 in March, beating expectations for a gain of 212,000.
The unemployment rate was 3.8%, down from 3.9% in the previous month, while average earnings rose 0.3% month-on-month, in line with expectations.
A surge in new jobs created last month did not generate a jump in wages that would threaten faster inflation as the number of people entering the labor market, or participation rate, jumped.
While the likelihood of a Fed rate cut in June fell to 51% from 59% the day before, pushing Treasury yields higher, Morgan Stanley continued its call for a rate cut in June.
“The data points to a non-inflationary expansion in the labor market and does not change the Fed’s course for a June cut,” Morgan Stanley said.
It is due out next week and will likely provide more signals on interest rate movements.
Apple is cutting jobs; Musk denies reports that Tesla has cut Model Y prices
Apple (NASDAQ:) shares rose 0.9% after the iPhone maker announced it was laying off more than 600 workers in California, its first major job loss since the pandemic.
Tesla Inc (NASDAQ:) shares fell nearly 2% after the electric vehicle maker cut prices on some of its Model Y SUVs by about $5,000. Meanwhile, Musk denied Reuters reports that the company was abandoning plans to produce an inexpensive Model 2.
Johnson & Johnson (NYSE:) shares fell 0.1% after the pharmaceutical giant announced it would buy the medical device maker. Shock wave medical (NASDAQ:), up 2% in a deal valued at $13.1 billion.
HubSpot (NYSE:) shares rose 4% after Reuters reported that Google owner Alphabet (NASDAQ:) is discussing with its advisers the possibility of making an offer for the online marketing software company with a market value of $35 billion.
Energy stocks drive oil prices higher
Energy stocks, including Valero Energy Corporation (NYSE:), Occidental Petroleum Corporation (NYSE:), Baker Hughes Co (NASDAQ:) rose more than 1%, helped by a surge in oil prices to their highest level in five months as worsening geopolitical tensions in the Middle East sparked fears of supply cuts.
Iran, OPEC’s third-biggest oil producer, has vowed revenge on Israel for Monday’s attack on the Iranian embassy in Syria, while Israel has vowed to defend itself.
(Peter Nurse and Ambar Warrick contributed to this article.)