U.S. stocks ended higher on Friday, erasing most of the market’s losses for the week and bringing the Standard & Poor’s 500 index close to the record high close it reached on Tuesday.
Technology and consumer-focused companies did the most to pull the market higher Friday. Amazon rose 3.2% after billionaire investor Warren Buffett said his company was buying the stock. Newell Brands soared 13.5% after reporting a strong quarter.
A strong report on hiring helped put investors in a buying mood.
The S&P 500 index rose 28 points, or 1%, to 2,945. The Dow Jones Industrial Average rose 197 points, or 0.7%, to 26,504. The Nasdaq rose 127 points, or 1.6%, to 8,164.
Investors welcomed the government’s latest snapshot of U.S. employment, which showed that job growth surged in April past economists’ forecasts and unemployment fell to a five-decade low.
Traders continued to weigh through corporate earnings reports for the first quarter. Results have come in mixed so far, but they have been good enough to ease worries that company profits would slump overall.
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United States Steel, Weight Watchers and Monster Beverage were among the latest companies to give investors surprisingly good results.
The market spent the week hitting a wall as investors searched for clearer signs that the economy remains strong. One of those signs appeared Friday morning in the form of a solid jobs report.
“The market has had such a remarkable recovery that at some point it has to pause and consolidate before climbing,” said Quincy Krosby, chief market strategist at Prudential Financial. “Overall, this was a solid report that should assuage fears that the U.S. economy is losing momentum.”