Dow Jones, S&P 500, and Nasdaq continue to trade in a bull market despite weaker than expected job report

The U.S. stock market ended higher on Friday, and Wall Street’s three main indexes advanced despite a weaker than expected job report. The U.S. released on Friday Nonfarm Payrolls report, which showed that the country added just 266K jobs in April.

Compared with the 770K jobs added in March, the job report disappointed and ​fall far short of economists’ estimate of 998K in April. The unemployment rate rose to 6.1% from 6.0%, but it is important to say that average hourly earnings rose by 21 cents to $30.17 (after dropping 4 cents in March).

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The weaker-than-expected job report helped stocks to advance because it alleviated concerns about rising inflation and potentially higher interest rates. The report boosted demand for high-yielding assets and confirmed the U.S. Federal Reserve’s stance of maintaining an ultra-loose monetary policy for the upcoming period.

“Growth names that were taken to the woodshed are getting another chance, because they will be perceived to be less risky in an environment where there is a slower recovery, and that’s really what the jobs data is indicating,” said Tom Martin, senior portfolio manager at Globalt Investments.

The U.S. policymakers said once again that the stimulus program would remain in place until the economy recovers to levels before the pandemic. The Dow and S&P 500 hit record closing highs on Friday and advanced on a weekly basis, while the Nasdaq Composite shed -1.51% on a weekly basis.

S&P 500 up 1.23% on a weekly basis

For the week, S&P 500 (SPX) booked a 1.23% increase and closed at 4,232 points.

S&P 500 advanced to record highs on Friday, but if the price falls below 4,000 points, it would be a strong “sell” signal, and we have the open way to 3,800 points.

DJIA up 2.67% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 2.67% for the week and closed at 34,777 points.

The Dow Jones Industrial Average advanced to record highs on Friday, and if the price jumps above 35,000 points, it would be a bullish confirmation for this index. On the other side, if the price falls below 34,000 points, it would be a firm “sell” signal, and the next target could be around 33,500 points.

Nasdaq Composite down -1.51% on a weekly basis

The Nasdaq Composite (COMP) has lost -1.51% on a weekly basis and closed at 13,752 points.

The current support level stands around 13,500 points, and if the price falls below this level, it would be a strong “sell” signal, and we have the open way to 13,000 points.

Summary

The Dow Jones Industrial Average and S&P 500 reached record highs on Friday, while the Nasdaq Composite closed below 13,800 points. The U.S. reported a weaker than expected job report which helped stocks to advance because it alleviated concerns about rising inflation and potentially higher interest rates.