Stocks ended the week with a big gain Friday after a better-than-expected jobs report gave investors another reason to think the U.S. economy is beginning to turn around.
The Dow Jones Industrial Average rose 127.83 points, or 1.2 percent, to close at 10,447.93. The blue-chip index snapped a three-week losing streak with its best performance before a Labor Day holiday since 2006, rising 2.9 percent.
All 30 Dow components rose, led by JPMorgan, Caterpillar , and American Express .
The S&P 500also snapped a three-week losing streak to end the week 3.8 percent higher. On Friday, the broad index ended 14.41 points higher, or 1.3 percent, to close at 1,104.51.
The Nasdaq, which had been up two of the last three weeks, gained 3.72 percent for the week. On Friday, the index rose 33.74 points, or 1.5 percent, to close at 2,233.75. The index was 3.7 percent higher for the week.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell more than 8 percent, below 22.
All S&P 500 sectors were higher, led by financials, technology and consumer disretionary sectors. For the week, financials were up 5.7 percent.
Stocks had sold off sharply during the summer over concerns the economy may be headed for a double-dip recession. But reports of stronger manufacturing activity in the U.S. and China sparked a rally on Wednesdaythat helped stocks to their best day in eight weeks. A better-than-expected report on August nonfarm payrolls on Friday gave investors reason to remain optimistic.
Investors piled into big financial stocks Friday including Goldman Sachs , which jumped more than 5 percent. Financial stocks have taken a bit hit over the summer, with the KBW Bank index tumbling almost 10 percent since the beginning of May. Other banks including JP Morgan and Wells Fargo also rose.
Strategists such as Anton Schutz, president of Mendon Capital, called the big financials “really cheap” and added in an interview on CBNC that the regionals will see a “big wave” of M&A activity in the near future.