Dow leaps 700 points on hot jobs report, Nasdaq notches sixth straight winning week: Live updates

Traders work the floor at the NYSE in New York.
Brendan McDermid | Reuters

The Dow Jones Industrial Average surged Friday for its best day since January as traders cheered a strong jobs report and the passage of a debt ceiling bill that averts a U.S. default.

The 30-stock Dow jumped 701.19 points, or 2.12%, to end at 33,762.76. The S&P 500 climbed 1.45% to close at 4,282.37. The Nasdaq Composite advanced 1.07% to 13,240.77, reaching its highest level since April 2022 during the session.

With Friday's gains, the S&P 500 and Nasdaq finished the holiday-shortened trading week about 1.8% and 2% higher, respectively. The Dow's Friday advance pushed it into positive territory for the week, finishing up 2%. The Nasdaq notched its sixth straight week higher, a streak length not seen for the technology-heavy index since 2020.


Nonfarm payrolls grew much more than expected in May, rising 339,000. Economists polled by Dow Jones expected a relatively modest 190,000 increase. It marked the 29th straight month of positive job growth.

Recently, strong employment data had been pressuring stocks on the notion it would keep the Federal Reserve raising interest rates. But Friday's data also showed average hourly earnings rose less than economists expected year over year, while the unemployment rate was higher than anticipated.

Both data points have given investors hope that the Fed could pause its interest rate hike campaign at the policy meeting later this month, according to Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

"The so-called Goldilocks has entered the house," Sandven said. "Clearly, on the bullish side, there are signs that inflation is starting to wane, speculation that the Fed is going to move into pause mode, increasing the likelihood of a soft landing."

Easing concerns around the U.S. debt ceiling also helped sentiment. The Senate passed a bill to raise the debt ceiling late Thursday night, sending the bill to President Joe Biden's desk. That comes after the House passed the Fiscal Responsibility Act on Wednesday, just days before the June 5 deadline set by U.S. Treasury Secretary Janet Yellen.

Lululemon shares popped more than 11% on strong results and a guidance boost, while MongoDB surged 28% on a blowout forecast.

Lea la cobertura del mercado de hoy en español aquí.

Volatility index closed Friday at lowest since Feb. 2020 — before lockdown

The CBOE Volatility Index — also known as Wall Street's "fear gauge" as it approximates expectations for how much the S&P 500 will rise and fall in coming weeks — closed Friday at 14.60, its lowest since Feb. 19, 2020, shortly before the Covid pandemic closed the economy.

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VIX index over past five years

— Scott Schnipper, Christopher Hayes

About time: Small-cap stocks post biggest one-day gain since November

The Russell 2000 index of small-cap stocks jumped 3.56% on Friday, the best one-day rally since Nov. 10, 2022, and rising above its 200-day moving average for the first time since March 8, just before Silicon Valley Bank blew up.

The smallcap  iShares Russell 2000 ETF outperformed both the largecap iShares Russell 1000 ETF and the SPDR S&P 500 ETF Trust by the widest margin since Nov. 1, 2021.

Year to date, the Russell has now gained 3.96%, far behind the S&P 500's advance of 11.5%.

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Russell 2000 vs S&P 500 over past month

But maybe the winds are shifting. In the week just ended, the Russell rose 3.3% while the S&P 500 added 1.8%.

— Scott Schnipper, Gina Francolla, Nick Wells

Stocks close day and week higher

Stocks finished Friday up, closing out a winning holiday-shortened trading week.

The Dow finished up about 2.1% higher and 2% up on the week. The S&P 500 added roughly 1.5% in Friday's session, ending the week up 1.8%.

The Nasdaq Composite rose around 1.1% Friday. With a 2% weekly gain, the Nasdaq notched its sixth straight week of wins. That's the longest weekly win streak for the technology-heavy index since 2020.

— Alex Harring

Cruise stocks among this week's top performers

Amid another winning week for the market, three cruise stocks made the list of top outperformers.

Norwegian Cruise Line and Royal Caribbean gained 9.3% and 7.8% week to date, respectively, making them fifth- and seventh-highest earners in the S&P 500 this week as of Friday morning. Carnival rose 6.7% this week.

Check out some of this week's other big gainers here.

— Hakyung Kim

Friday jobs data is a 'gift' to Fed, Homrich Berg principal says

Investors were focusing mainly on the wage data, according to Ross Bramwell, principal at Homrich Berg, because it could prompt the Fed to pause its interest rate hiking campaign at the policy meeting scheduled for later this month.

"Markets are kind of cheering that, 'Hey, we've been able to get to, hopefully, a pause level, and we're not in a recession,'" Bramwell said. "This really just kind of gives credence to those who are wanting to believe in the soft-landing scenario. This is kind of a gift that kind of fell in the Fed's lap."

— Alex Harring

This advertising stock is 'best-in-class,' Morgan Stanley says

Morgan Stanley upgraded shares of The Trade Desk and added the firm to its "best-in-class" list.

"As the leading independent demand-side platform (DSP), TTD is well positioned to benefit from both trends, as advertisers 1) shift dollars from traditional linear TV to streaming, and 2) leverage retailers' customer data to run more effective/measurable ad campaigns," said analyst Matthew Cost.

The stock has added 63% from the start of 2023 thanks to a rebound in ad sales.

CNBC Pro subscribers can read the full story here.

— Brian Evans

BofA says 'Magnificent Seven' has generated most of this year's gains

Bank of America has identified a "Magnificent Seven" group of stocks that have powered most of the gains this year for the S&P 500.

The group has accounted for almost 90% of the large-cap index's 10% gain in 2023 and includes familiar names such as Nvidia and Microsoft.

Michael Hartnett, the firm's chief investment strategist, said a good contrarian strategy for June would be to bet against the group after it has seen such outsized gains. CNBC Pro subscribers can read more here.

—Jeff Cox

Stocks remain on track for major gains entering final trading hour

The three main industries were still on pace to post large gains in Friday's session as the final trading hour of the trading day and holiday-shortened week kicked off.

The Dow was up more than 700 points, or 2.13%. It's on pace to see its best day since November, 30, 2022, when the Dow finished up 2.18%. Friday's rally pulled the blue-chip average into positive territory on the week, last up 2.08%.

Elsewhere, the S&P 500 advanced 1.55% on Friday. It's up 1.92% week to date.

And the Nasdaq Composite added a relatively modest 1.09% on Friday, but was neck and neck with the Dow on weekly gains at 2.06%. The technology-heavy index is on pace to post its sixth straight week of wins, a streak length not seen for the Nasdaq since 2020.

— Alex Harring

Fitch says it is not removing credit watch for U.S. despite deal

The U.S. is not out of the fiscal doghouse with Fitch, as the ratings firm said government debt is still on a watch for a possible downgrade despite the debt ceiling deal.

"Reaching an agreement despite heated political partisanship while reducing fiscal deficits modestly over the next two years are positive considerations," Fitch said in a release. "However, Fitch believes that repeated political standoffs around the debt-limit and last-minute suspensions before the x-date (when the Treasury's cash position and extraordinary measures are exhausted) lowers confidence in governance on fiscal and debt matters."

The firm cited a "steady deterioration in governance over the last 15 years" as reasons for its pessimistic outlook and said it will "resolve" the credit watch status in the third quarter of 2023.

Moody's on Thursday said it is not considering the U.S. for a downgrade.

—Jeff Cox

Verizon and Salesforce sit out of Dow rally

Salesforce and Verizon were the only two Dow members trading down on Friday, restricting gains on the closely followed index's rally.

Verizon was among a group of telecommunication stocks trading lower after Bloomberg reported that Amazon was considering launching a mobile service for Prime members. Shares were 3.6% lower Friday afternoon.

Salesforce slipped 0.7%, continuing to struggle after investors grew nervous about commentary from company management when reporting earnings Wednesday. The statements, which centered on concerns around potential pressure as customers pull back from big consulting deals, pulled attention from a better-than-expected quarterly report and guidance raise. Shares have slipped 1.8% week to date.

But those slides were diluted by gains from the other 28 members. 3M and Caterpillar led the blue-chip index up with gains of around 8.5% and 7.8%, respectively. The Dow as a whole was up more than 700 points at session highs.

— Alex Harring

Bank of America reiterates buy rating on Broadcom, says artificial intelligence portfolio is undervalued

Broadcom will continue to benefit from investor excitement over artificial intelligence, according to Bank of America.

The firm reiterated a buy rating on the chipmaker on Thursday, albeit with a renewed price target. BofA thinks an undervalued AI segment could add to upside thanks to the company's exposure to the sector.

"In a bull case scenario where AVGO can grow AI exposure to ~25% of sales (and hold growth rates of non-AI assets at previously mentioned levels), we see incremental $2bn/$3 upside to our sales/EPS estimates," Analyst Vivek Arya said.

Broadcom stock rose more than 2% on Friday and has added more than 41% from the start of the year.

CNBC Pro subscribers can read the full story here.

— Brian Evans

S&P 500 now flat since rate hikes started

Friday's gain put the S&P 500 around breakeven going back to March 2022, when the Federal Reserve embarked on its current interest rate hiking cycle.

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SPX flat since rate hikes started

Bespoke Investment Group first pointed this out.

It has been a tumultuous time for investors, as those rate increases pushed the broader market index into a bear market. However, Wall Street may be seeing some light at the end of the tunnel.

— Fred Imbert

Indexes trade near session highs as rally keeps strength heading into afternoon

The major indexes were trading near session highs with just under 3 hours left in the trading day as investors kept the Friday advance going.

The Dow rose 640 points, near its high of 666 points up.

Similarly, both the S&P 500