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Dow Jumps on Rate Cut Prospects

AAPL

Stocks jumped on Friday, building on strong weekly gains, as weak economic data increased the odds of easier monetary policy from the Federal Reserve.

The Dow Jones Industrial Average leaped 227.21 points to begin Friday at 25,947.87, led by gains in Microsoft and Apple.

The S&P 500 gained 25.15 points to 2,868.64, as the tech sector outperformed.

The NASDAQ Composite regrouped 85.31 points, or 1.1%, to 7,700.86.

The Dow was up 3.7% this week heading into Friday's session. It was also on pace to snap a six-week winning streak. The S&P 500 picked up 3.3%, and NASDAQ was up 2.2% this week.

Treasury yields fell, and bank shares followed them. Citigroup slipped 0.6% while J.P. Morgan Chase slid 0.9% and Bank of America dipped 1%, respectively.

The U.S. economy added 75,000 jobs in May, marking the second straight month of monthly jobs growth below 100,000. Economists polled by Dow Jones expected an increase of 180,000 jobs. Wage growth also slowed.

Market expectations for a Fed rate cut in June rose to 27.5% from 16.7% after the data release. The market is also pricing in a 79% chance of lower Fed rates by July.

Prices for the benchmark 10-year U.S. Treasury leaped, lowering yields to 2.07% from Thursday's 2.13%. Treasury prices and yields move in opposite directions.

Oil prices gained 78 cents to $53.37 U.S. a barrel.

Gold prices gained $5.50 at $1,348.20 U.S. an ounce.



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