Investing.com-- The S&P 500 snapped a two-week wining streak despite a strong rally Friday as a stronger-than-expected jobs report didn't stoke a jump in wages, adding to hopes of a soft landing for the economy.
At 16:00 ET (21:00 GMT), Dow Jones Industrial Average rose 307 points, or 0.80%, S&P 500 rose 1.1%, and NASDAQ Composite added 1.2%. All three benchmarks, however, ended the week in the red as odds of a June rate cut fell.
Nonfarm payrolls grow more than expected in March
Data released earlier Friday showed that nonfarm payrolls increased by 303,000 jobs in March, more than the expected 212,000 gain.
The unemployment rate came in at 3.8%, a fall from 3.9% the prior month, while average earnings rose 0.3% on a monthly basis, in line with expectations.
The sharp uptick in new jobs created last month didn't spark a jump in wages to threaten a faster pace of inflation as the number of people entering the labor market, or the participation rate, jumped.
While the odds of a June Fed rate cut fell to 51% from 59% a day earlier, pushing Treasury yields higher, Morgan Stanley continued its call for a June cut.
"The data point to a noninflationary expansion of the labor market and do not alter the Fed's course to a June cut," Morgan Stanley said.
Inflation data for March is due next week, and is likely to provide more cues on the path of interest rates.
Apple axes jobs; Tesla cuts price on Model Y
Apple (NASDAQ:AAPL) stock rose 0.5% after the iPhone maker announced it is laying off more than 600 workers in California, its first major job losses since the pandemic.
Tesla Inc (NASDAQ:TSLA) fell 3.6% after the electric vehicle maker cut the price on some of its Model Y SUVs by about $5,000. Musk, meanwhile, denied a Reuters that it was scrapping its plans to produce a low-cost Model 2.
Johnson & Johnson (NYSE:JNJ) stock was flat after the drug giant announced it will buy medical device maker Shockwave Medical (NASDAQ:SWAV), up 2%, in a $13.1 billion deal.
HubSpot (NYSE:HUBS) stock rose 2% after Reuters reported that Google-owner Alphabet (NASDAQ:GOOG) has been talking to its advisers about the possibility of making an offer for the online marketing software company with a market value of $35 billion.
Energy stocks ride oil prices higher
Energy stocks including Valero Energy Corporation (NYSE:VLO), Occidental Petroleum Corporation (NYSE:OXY), Baker Hughes Co (NASDAQ:BKR) were up more than 1%, underpinned by a jump in oil prices to their highest level in five months as worsening geopolitical tensions in the Middle East raised concerns over tightening supply.
Iran, the third-largest OPEC producer, has vowed revenge against Israel for an attack on Iran's embassy in Syria on Monday, and Israel has vowed to defend itself.
(Peter Nurse, Ambar Warrick contributed to this article.)