US stocks surged on Friday, driven by positive earnings from tech giant Apple (AAPL) and a weaker-than-expected jobs report that fueled hopes of a Federal Reserve interest rate cut. The Dow Jones Industrial Average (^DJI) soared 1%, or about 400 points, while the S&P 500 (^GSPC) rose 1.1%, and the Nasdaq Composite (^IXIC) jumped 1.8%.
The April jobs report revealed a cooling US labor market, with employers adding 175,000 jobs and the unemployment rate unexpectedly rising to 3.9%, higher than the expected 240,000 jobs. This data increased expectations of a rate cut by the Fed, with traders now seeing a 50-50 chance of a cut at the July meeting.
Apple stole the spotlight on Friday with better-than-expected quarterly profit and revenue, particularly in China, despite concerns about iPhone sales. The announcement of a $110 billion stock buyback, the largest in US history, sent Apple shares up by 6% in early trading, boosting the Dow.
Additionally, Amgen (AMGN) saw its shares surge nearly 13% after positive comments from its CEO regarding its obesity drug’s potential to compete with market leaders. The overall market sentiment was positive, with investors reacting favorably to the earnings reports and potential future developments in the tech and pharmaceutical sectors.
Overall, the market rally on Friday was fueled by a combination of strong corporate earnings, hopes for a Fed rate cut, and positive outlooks for key companies, signaling a bullish start to the trading day.