Stock Market Today: Dow Rises on Strong Jobs Report to Reach New Record High

Investing Update: Dow Hits Record Highs Amid Strong Jobs Report

The Dow closed at record highs on Friday, buoyed by a stronger-than-expected jobs report that highlighted the robustness of the U.S. economy, alleviating concerns over a possible recession.

As of 4:00 p.m. ET, the Dow Jones Industrial Average rose by 341 points, or 0.8%, concluding the day at 42,352.75. The S&P 500 also saw a significant increase, closing 0.9% higher, while the NASDAQ Composite gained 1.2%.

Strong Jobs Growth Mitigates Recession Fears, Dims Rate Cut Expectations

In September, U.S. employment growth surpassed expectations, with nonfarm payrolls increasing by 254,000 jobs, up from a revised estimate of 159,000 in August. Economists had predicted a rise of 147,000 jobs for the month. The unemployment rate decreased slightly to 4.1%, down from the previous month’s 4.2%.

This positive employment data eased fears of an economic slowdown but reduced the likelihood of a significant interest rate cut during the Federal Reserve’s meeting in November. Morgan Stanley noted that while a broad reacceleration was evident, they still anticipate 25 basis point rate cuts at both the November and December meetings.

Chicago Fed president Austan Goolsbee characterized the jobs report as "superb" and suggested it was appropriate for the Fed to consider substantial interest rate reductions over the next 12 to 18 months.

Corporate Highlights: Spirit Airlines and Rivian Face Challenges

In the corporate realm, Spirit Airlines saw its stock plummet by 25% after reports indicated that efforts to restructure its debt and avoid bankruptcy were faltering due to failed negotiations with bondholders.

Rivian Automotive’s stock also faced a setback, falling more than 3% after the electric vehicle manufacturer reduced its production forecast for the year and reported fewer vehicle deliveries in the third quarter than anticipated, attributed to parts shortages.

Additionally, a strike by U.S. dockworkers appears to be coming to an end, as an agreement between their union and representatives of large ocean shipping companies is expected to lead to a wage increase of approximately 62% over the next six years.

In a more positive note, shares of Ubisoft Entertainment surged by over 33% following reports that Tencent and the Guillemot family were considering a potential offer for the video game developer.

(Peter Nurse contributed to this report.)