Dow jumps more than 150 points, cutting losses for the week after steady jobs report

Stocks traded higher on Friday following the release the latest U.S. jobs report, trimming their losses for the week.

The Dow Jones Industrial Average climbed 190 points, or 0.8%. The S&P 500 advanced 0.7% along with the Nasdaq Composite.

Tech was the best-performing sector in the S&P 500, gaining 0.9% as Apple rose 1.9%. The tech giant’s stock rose after Nikkei reported the company is increasing iPhone 11 production by 10%.

The U.S. economy added 136,000 jobs in September, the Bureau of Labor Statistics said Friday. Economists polled by Dow Jones expected an increase of 145,000 jobs. The unemployment rate fell to 3.5%, a 50-year low, but wages grew ta a slower-than-expected pace last month.

Treasury yields briefly jumped before giving back those gains. The 10-year yield last traded at 1.52% after hitting 1.55%.

“This sounds like a Goldilocks number to me,” Steve Grasso, director of institutional sales at Stuart Frankel, told CNBC’s “Squawk Box.” “It still gives the Fed some room for cover to cut rates. This is as close to a not-too-hot, not-too-cold greeting for the market.”

Traders work on the floor of the New York Stock Exchange, October 30, 2018.

Brendan McDermid | Reuters

The Federal Reserve is largely expected to cut rates later this month. Expectations for a 25 basis-point rate cut were at 79% on Friday, according to the CME Group’s FedWatch tool.

Rate-cut expectations surged on Thursday following the release of disappointing data on the U.S. services sector. The increasing hope of lower Fed rates led to a sharp rebound on Wall Street as the Dow recovered from a 335-point deficit to close higher.

Wall Street will be watching speeches by Fed officials later in the day, including Chairman Jerome Powell.

Friday’s gains cut into Wall Street’s weekly losses, but the major indexes were still on pace to post a three-week losing streak. The Dow and S&P 500 were both down more than 1% week-to-date while the Nasdaq had lost 0.2%.

Those weekly losses came after a dismal U.S. manufacturing data report sparked fears of a potential recession in the U.S. Between Tuesday and Wednesday, the Dow lost more than 800 points.

—CNBC’s Silvia Amaro contributed to this report.

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