The S&P 500 Index closed up 0.65% on Friday, reaching an all-time high, driven by optimism about the U.S. economic outlook. The Dow Jones Industrial Average rose 0.48%, and the Nasdaq 100 increased by 1.02%. The U.S. added 50,000 jobs in December, below expectations of 70,000, but the unemployment rate fell to 4.4%, lower than the forecast of 4.5%. Average hourly earnings unexpectedly increased by 3.8% year-over-year, exceeding the 3.6% expectation.
Market gains were bolstered by a rise in consumer sentiment, with the University of Michigan’s January index increasing by 1.1 to 54.0, surpassing expectations of 53.5. Global markets also contributed to the positive momentum, with Europe’s Euro Stoxx 50 hitting a record high and China’s Shanghai Composite reaching a 10.5-year peak. U.S. Treasury yields saw a slight rise as inflation expectations increased amidst hawkish comments from Atlanta Fed President Raphael Bostic, who emphasized ongoing inflation concerns.
