Market Roars Back: Stocks Surge as Jobs Report Hints at Fed Shift
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- September 27, 2025
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Major U.S. stock indexes concluded a volatile week with a powerful rally on Friday, November 4, 2022, as investors eagerly embraced economic data suggesting a potential easing in the Federal Reserve's aggressive rate-hiking campaign. The significant gains across the board provided a much-needed lift, even if they couldn't entirely reverse the week's overall losses.
The S&P 500, a broad measure of the market's health, surged an impressive 75.03 points, or 2.8%, to close at 3,770.55.
Not to be outdone, the Dow Jones Industrial Average climbed 401.97 points, or 1.3%, reaching 32,403.22. The tech-heavy Nasdaq Composite led the charge with a robust 384.50-point jump, equivalent to a 3.2% gain, ending the day at 10,475.25. Even smaller companies participated in the upside, with the Russell 2000 index of small-cap stocks advancing 46.19 points, or 2.6%, to 1,770.83.
Despite Friday's strong performance, all major indexes finished the week lower, putting an end to recent winning streaks.
The S&P 500 and Nasdaq had enjoyed four consecutive weeks of gains, while the Dow was on a two-week winning streak—all snapped by the week's broader market jitters.
The catalyst for Friday's market enthusiasm was a key employment report from the government. The report revealed that the U.S. unemployment rate edged up to 3.7% in October, slightly higher than anticipated, and, perhaps more critically, wage growth showed signs of slowing.
Investors interpreted this as a hopeful sign that the Federal Reserve's series of aggressive interest rate hikes might finally be taking hold, cooling the economy enough to potentially temper future rate increases.
Earlier in the week, Fed Chair Jerome Powell had indicated that while rate hikes are likely to continue, the central bank might consider smaller increments going forward.
This nuanced message, coupled with the latest jobs data, fueled speculation that the Fed could pivot to a less hawkish stance sooner than expected, easing concerns about a potential recession.
Technology and other growth stocks, which are particularly sensitive to interest rate fluctuations, were among the biggest beneficiaries of the day's rally.
Giants like Amazon saw their shares climb, alongside strong performances from Microsoft and Google parent company Alphabet, signaling renewed investor confidence in this sector's future prospects if interest rates stabilize.
The bond market also reflected the shifting sentiment, with Treasury yields falling significantly.
The yield on the 10-year Treasury, a benchmark for mortgage rates and other loans, dropped to 4.06% from 4.16% late Thursday. This decline signals that investors are less concerned about inflation and future rate hikes, moving money into stocks and away from the perceived safety of bonds.
In commodity markets, U.S.
crude oil prices dipped 1.6% to settle at $92.61 a barrel, while Brent crude, the international standard, fell 1.5% to $98.57 a barrel. Meanwhile, global markets presented a mixed picture, with European stock indexes generally rising, while most Asian markets ended the day lower.
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