Stocks rose to record highs on Friday despite weaker-than-expected jobs data as Wall Street concluded a volatile week chalk full of geopolitical concerns.
The Dow Jones Industrial Average traded 48 points higher, or 0.2% to break above 29,000 for the first time ever. The S&P 500 climbed 0.2% while the Nasdaq Composite advanced 0.3%.
Pfizer shares rose 1.7% to lead the Dow’s gains. Health care and tech were the best-performing sectors in the S&P 500, climbing 0.5% each.
The U.S. economy added 145,000 jobs in December. Economists polled by Dow Jones expect the U.S. economy to have added 160,000 jobs in December.
Wages also disappointed, growing by just 2.9% on a year-over-year basis. Economists had forecast a gain of 3.1%. December was also the first month since July 2018 that wages grew by less than 3% from the year before.
“The December jobs report was a little softer than expected but not so much so as to stoke big worries about the US consumer and the health of the overall economy,” said Alec Young, director of global markets research at FTSE Russell. “Although both readings were slightly below expectations and the recent trend, neither is overly alarming by itself.”
Lucas Jackson | Reuters
Stocks hit record highs on Thursday as tensions between Iran and the U.S. decreased. The move higher put the major averages on track for solid weekly gains after a volatile week of trading.
Through Thursday’s close, the S&P 500 was up 1.2% for the week. The Dow and Nasdaq had risen 1.1% and 2%, respectively in that time period.
The Dow recovered from a 200-point drop on Monday but then fell more than 100 points on Tuesday as investors grappled with the uncertainty surrounding the U.S. and Iran. On Wednesday, President Donald Trump said Iran appeared to be “standing down” after an attack on Iraqi air bases housing U.S. troops. That comment sparked a relief rally that carried into Thursday’s session.
Stocks also got a boost Thursday as investors were optimistic about next week’s signing of a “Phase One” trade deal between the U.S. and China. The two countries have been at odds over commerce for about two years, when Trump first applied tariffs on Chinese solar panels and washing machines.
—CNBC’s Silvia Amaro, Sam Meredith and Jesse Pound contributed to this report.
