Traders work on the floor of the New York Stock Exchange during morning trading on November 26, 2024 in New York City.
Michael M. Santiago | Getty Images
Stocks rose after November jobs data came in slightly better than expected on Friday, but not so hot as to deter the Federal Reserve from cutting rates again later this month.
The Dow Jones Industrial Average gains 90 points, or 0.2%. The S&P 500 climbed 0.4%, and the Nasdaq Composite advanced 0.6%.
The November labor report, released on Friday morning, revealed that nonfarm payrolls increased by 227,000 in November, above the Dow Jones estimate of 214,000 and marking a huge hike from October’s gain of just 12,000. The unemployment rate nudged up to 4.2%, as expected.
Following the not-too-hot, not-too-cold unemployment data, traders increased their bets on another rate cut in two weeks to 88%.
“Data this morning was a Thanksgiving buffet with payrolls spot on, revisions positive, but unemployment ticking higher despite the participation rate falling. This print doesn’t kill the holiday spirit and the Fed remains on track to deliver a cut in December,” said Lindsay Rosner, head of multi-sector investing at Goldman Sachs Asset Management.
Given the continued strength of the U.S. economy, Fed Chair Jerome Powell has previously said that policymakers don’t need to be “in a hurry to lower rates.”
